Bank Mergers & Acquisitions Guide

Navigate federal regulations with proven strategies for seamless bank integrations.

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Traditional and Assisted M&A Expertise

At PD&J Associates, LLC, Mr. Leibundgut has a long history in the strategic planning and due diligence that accompany a financial institution acquisition or merger. This extensive experience covers both traditional transactions and OCC/FDIC-assisted purchases.

Meticulous Planning Mitigates M&A Risk

The successful completion of any merger or acquisition—public or private, assisted or non-assisted—hinges on the thoroughness and breadth of the initial planning, preparation, and execution of the due diligence plan.

Failure to properly plan and conduct in-depth due diligence is the single largest reason acquiring banks and institutions sustain significant unexpected losses. These complex transactions require the allocation of:

  • Sufficient time and resources.
  • Appropriate niche areas of expertise at all stages.

Meticulous attention to detail is the rule.

Phased Approach to M&A

The firm recommends a phased approach to any acquisition or merger but remains prepared to mobilize quickly to meet tight initial timeframes. When retained, an initial strategic plan for due diligence is developed, focusing primarily on the target's lending process and asset quality.

In-Depth Due Diligence Components

The review process includes, but is not limited to, the following critical steps:

  • Review of Planning Documents: Evaluating the target's key documents (strategic plan, business plan, risk appetite, budget, and lending policies) for alignment with necessary risk management protocols.
  • Negotiation and Pricing: Ensuring the deal pricing is negotiated to comply with each client's goals and expectations.
  • Two-Phase Credit Review: Individual credits are reviewed (often in two phases for sufficient penetration) to determine the quality of:
    • Underwriting and documentation.
    • Account management.
  • Risk Identification and Quantification:
    • Determining if the target's risk rating practices accurately portray the risk in the commercial and retail loan portfolios.
    • Identifying and quantifying extraordinary risks not properly reflected in the Allowance for Loan and Lease Loss (ALLL) reserves.
  • Evaluation of Credit Culture: Assessing the overall quality and integrity reflected in the:
    • Lending, internal control, and independent oversight of credit portfolios.
    • Management and staff quality.
    • Overall credit culture within the Target organization.
Coordinating Your Acquisition Strategy

PD&J Associates, LLC helps clients plan and execute an acquisition or merger. They ensure that your strategic objectives are properly coordinated with the other required services:

  • Legal
  • Investment Banking
  • Accounting
  • Due Diligence

The services are performed in a timely, efficient, and thorough manner to protect against unanticipated losses. While the scope of each engagement is mutually determined with the client, the transactions follow a well-developed pattern of strategic due diligence planning, preparation, negotiation, and execution.

Proven Expertise for High-Exposure Cases

Peter W. Leibundgut has served as an expert witness in nationally known cases involving over $1 billion in exposure. Access the specialized knowledge necessary to achieve a favorable outcome.

Meet Your Expert