Volumes have been written about the anticipated changes in the banking and financial services industry brought about by the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act on July 21, 2010. In our practice, we have seen firsthand that the sheer length and complexity of Dodd-Frank, and reams of implementing regulations, have led to much uncertainty, anxiety and change. One likely change will be the consolidation of smaller banks as they seek to cope with a) increased regulatory costs; b) compliance complexities; and c) the intense price competition of modern day banking.
Stated simply, many community banks find themselves at a strategic crossroads. They may be presently large enough to thrive in the present environment. They may need to grow (either organically or through acquisition) to a size which enables them to operate efficiently and profitably. Alternatively, they may need to prepare to sell.
To make this decision, we are seeing bank owners undertake a thorough evaluation of a bank’s strategic alternatives, including the tax, estate planning and regulatory aspects of these alternatives. McGrath North attorneys, including members of the McGrath North Tax Group, have been assisting bank owners and their other professional advisors with this process.
Our mergers and acquisitions attorneys have three decades of experience in representing buyers and sellers of banks and bank holding companies. This experience includes the assessment of strategic alternatives including all aspects of sales transactions from strategic planning to capital raises, negotiation of deals and regulatory approvals.
If you or your client would like to review a bank’s strategic alternatives, or discuss a potential bank sale or acquisition, feel free to contact a member of the McGrath North Tax Group or Financial Services Group.