Last month, the Financial Institutions Group examined the process of buying a community bank in light of the expectation that industry consolidation will follow on the heels of this period of historically low sale prices. For every issue that a purchaser faces, the target bank faces at least as many. Amid the various components of a negotiated sale, community bank executives should pay close attention to the allocation of risk between the bank and the potential purchaser. Key areas on which to focus include adjustments to book value, purchase price escrow and application preparation.
Partner Pinchus D. Raice, Chairman of Pryor Cashman’s Financial Institutions Group (FIG), and FIG associate Robert C. Lamonica have written an informative Legal Update entitled Selling A Community Bank: Practical Tips.
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