McGladrey Assists Regional Bank with Acquisition of Distressed Bank Through FDIC Transaction
Due diligence, accounting, financial reporting, asset management among services provided
CHICAGO – (October 21, 2011)—RSM McGladrey, Inc. and McGladrey & Pullen LLP, which operate under the McGladrey brand, as one of the nation's leading providers of assurance, tax and consulting services, recently announced the completion of a bank acquisition project, which helped a successful regional bank acquire a distressed bank through an FDIC-assisted transaction.
RSM McGladrey provided the acquirer with support surrounding the acquisition strategy, tax planning, due diligence of asset portfolio, assistance with the 'closing weekend,' preparation for managing loss share compliance, and merger integration after the acquisition, according to Brian Holmes, managing director with RSM McGladrey in Chicago.
"Over the past 18 months, McGladrey has provided due diligence and other M&A services for more than $12 billion in community bank transactions," said Dan Shumovich managing director with RSM McGladrey in Los Angeles. "Our focus is to assist acquirers in performing the proper due diligence to avoid undue risk on the transaction, and provide better and more accurate deal pricing."
In addition to providing advice on market transactions, McGladrey has significant experience working with the FDIC on failed institutions.
"We have managed more than $14 billion in receivership assets, performed due diligence on $8 billion in troubled assets, and monitored compliance of more than 250,000 assets under loss share agreements that acquiring institutions have entered into with the FDIC," said Michael Sher, the RSM McGladrey managing director who led the effort. "Expanding team allows us to provide our unique expertise – gained through years of experience working with government regulators – to banks and private equity groups that are focused on acquiring troubled banks in a government assisted transaction."
"Currently, there are more than 7,500 banks and thrifts in the United States," said Dan Hayes, national director of financial services risk advisory services for RSM McGladrey in Blue Bell, PA. "Due to increased regulation and capital requirements, many believe that number will decrease to closer to 5,000." More than 865 institutions remain on the FDIC 'Problem List.' Industry consolidation and continued closing of banks will drive the need for advisors with deep transaction knowledge and experience. That's what we offer at McGladrey."
Sher, Hayes and Holmes are supported by a national network of consultants focused on key issues community banks face through market acquisitions, as well as the intricacies of dealing with the FDIC on assisted transactions. The McGladrey team helps bank executives address these additional burdens, so they can focus on the business of banking.
In addition to M&A advisory services, McGladrey advises regional and community banks on a number of critical risk management, corporate governance and operational issue, including internal audit services, loan review, regulatory compliance, enterprise risk management, strategy and process improvement, Bank Secrecy Act and Anti Money Laundering.
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