O'Reilly logo

The Art of Bank M&A: Buying, Selling, Merging, and Investing in Regulated Depository Institutions in the New Environment by Dennis J. Roberts, Alexandra Lajoux

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 6

Confirmatory Bank Due Diligence

Trust but verify.

—Ronald Reagan

Confirmatory due diligence of a bank acquisition target is a time for digging deeper. Once a potential acquirer has conducted a preliminary study or preliminary due diligence of a target bank to estimate its value, risks, and a ballpark price, then it is time for a closer look at the bank in light of a future combination. In Chapter 6, we described the main factors of a bank’s typical balance sheet and income statement, which can be used to analyze (as well as manage) various bank risks, and reported commonly used ratios. We also discussed the related topics of stress testing. In this chapter, we will take a closer look at bank solvency through an in-depth review of finances, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required