Getting It Right: Loan Valuation and Credit Marks in Today’s M&A Market

Jeff K. Davis, CFA, Managing Director of Financial Institutions, and Andrew K. Gibbs, CFA, CPA/ABV, Leader of the Depository Institutions Group, spoke at the 2015 Acquire or Be Acquired Conference sponsored by Bank Director magazine.

Andy and Jeff presented the topic “Getting It Right: Loan Valuation and Credit Marks in Today’s M&A Market” on Monday, January 26. Although investors and perhaps bankers are not as focused on credit as was the case several years ago, properly assessing credit risk and determining appropriate credit marks remains the key arbiter in determining whether a deal is destined to struggle or meet/exceed expectations.  This session looked at the evolution of loan portfolio valuations as part of due diligence and M&A pricing since the financial crisis. Davis and Gibbs provided insight into some of the nuances around the evaluation process and what to look for in terms of potential potholes regarding potential acquisitions.

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Mercer Capital’s Experience

  • Mercer Capital has completed dozens of loan portfolio valuation engagements representing billions of dollars of unpaid principal balance
  • Mercer Capital has a team of professionals experienced in loan portfolio valuation engagements and other financial reporting engagements
  • Financial institutions are the largest industry concentration of Mercer Capital
  • We have completed over 1,000 engagements since the founding of the firm in 1982