Finder Function
Broad vs Targeted Deals
A spearhead of M&A is a finder function. In targeted banking transactions, buyers usually follow for years smaller banks in areas of their interest, including banks that cross their footprint, in both geography and products. However, for a buyer expressing an interest prematurely or even revealing their identity, may result in an asset priced on merits of the buyer as opposed to merits of the target.
Targets also would strategically build their business around a number of potential acquirors, trying to predict their own fitness and compatibility with a desirable buyer’s business model, in case their ambition didn’t make it to a JP Morgan-sized bank. If the latter transpires, a target’s next best option is to stir a bidding war among potential matches.
M&A professionals deal with the fact that even in some seemingly locked targeted transactions, the parties’ buying and selling intentions can shift during the deal lifecycle and it is not only healthy, but strategically essential to keep an eye on an alternative. Such alternatives keep both parties’ demands at bay and all eyes on the ball, moving deals alon
Broad Dealmaking
On 1000BANKS, upon reviewing the instant, free and self-searchable Fairness Opinion based on the sold and currently listed offerings as compares, even targeted deals often switch to broad, due to abundance of supply. An incidental consequence of 1000BANKS platform is expansion of the broad deals’ market share.