Merger & Acquisition Advisory

In a consolidating industry, banks often become aware of potentially attractive acquisition opportunities. Mercer Capital can efficiently and effectively analyze the target institution, evaluate the financial effects of the transaction on the buyer, and determine a reasonable valuation range. If appropriate, Mercer Capital can assist in negotiating the transaction and evaluating alternative financing mechanisms.

Branch acquisition opportunities are complicated by the occasional lack of data regarding the subject branches and the potentially significant capital impact of the transaction. Mercer Capital can assist in reducing this financial uncertainty by analyzing and modeling the potential financial effects of a branch acquisition, as well as by providing appropriate valuation support.

Fairness Opinions

Fairness opinions are an integral part of significant transactions for sellers and, potentially, for buyers. A fairness opinion supports a board’s determination that the consideration received or paid in a transaction is fair to shareholders from a financial point of view. Mercer Capital has experience rendering fairness opinions in complex scenarios, such as recapitalizations or related party transactions. Further, Mercer Capital has provided second fairness opinions in situations where a perceived conflict of interest may exist between an institution and an investment banking firm.

Distressed Institutions Assistance

Mercer Capital has an experienced view of the asset quality problems that financial institutions currently face. We work with challenged financial institutions nationally, primarily as a result of offering goodwill impairment testing for compliance with ASC 350. We have provided goodwill impairment testing services to banking clients ranging in size from $500 million to $40 billion in assets.

We have worked with banks in the most challenged geographic markets in the U.S., such as Phoenix, Las Vegas, the Inland Empire of California, and various locations in Florida and Georgia. We believe our experience in assessing the issues facing challenged banks in combination with applying valuation and accounting principles, gives us a unique perspective. Furthermore, we are actively engaged with capital market participants, including private equity funds which have made bank investments.

Board Presentations

Mercer Capital has advised boards of directors in a wide range of matters. Topics for these board presentations have included selling now versus selling later, repurchasing stock, managing capital, and comparing the subject institution’s financial performance against its peers.