Page 8 - Winter 2025 - 2.pub

Technology– Technological changes have geographic location of an organization may situation is unique and will be viewed
spurred financial innovations which have increase, or limit, the number of viable differently from each stakeholder of the
altered bank products, services and production acquirors. An evaluation of potential buyers organization.
processes. Unfortunately, each change comes should be performed as part of the process in
Even if the new Administration is able to reduce
with a substantial investment on the part of the determining whether or not to sell an
bank regulations, cut back unreasonable
organization and with these changes happening organization.
enforcement actions and the Fed lowers rates
constantly, banks have had a hard time paying
Personal Investment Objectives – When quickly, which is certainly in doubt, the mystical
for and keeping up with the new
considering a sale, the desire to diversify a large city of Shangri-La will likely remain just over the
technologies. A bank’s ability or inability to
investment in the bank, the need for liquidity or next mountain peak and the decision to sell will
make the necessary investments in technology
required to meet customer demands and for estate planning purposes, are elements that still be a challenge. Good luck!
play a major role in the decision-making
expectations will impact the decision to sell or Bob Fegtly (bflegtly@ddfconsulting.com), MBA,
process. Not surprisingly, bank investments
not. CVA, is one of the original founding partners of
comprise a large portion of an owner’s net
DD&F Consulting Group and serves as
M&A Environment – Many factors play into the worth and, therefore, these concerns come into
Managing Partner over Mergers & Acquisitions
level of M&A activity and anticipated pricing: play.
and Valuations Group. DD&F is an ACB
the economy, valuations of publicly traded
Although the tangible, financial outcome may Associate Member.
stocks, regulations, GAAP and regulatory
seem cut-and-dried when considering whether
accounting and capital requirements. However,
“you should stay or you should go,” the reality is
it should be noted that intangible reasons, such
that many intangible variables impact the
as a need for low-cost deposits, branch decision. For an organization’s Board of
footprint, special/new product lines, etc., can Directors or large stockholders to make a fully
also affect pricing and impact the consideration
informed decision and determine the best
of a sale.
course of action for all involved, the intangibles
Potential Buyers – The asset size and should be given due consideration. Each

Arkansas Community Banker | 8 | Winter 2025