“M&A Experts: Bank Deals Challenged by Lower Valuations and Picky Buyers in 2015”
Bank mergers and acquisitions may prove more challenging to get done this year if the oil sector doesn’t bounce back, according to financial M&A experts, who say there is a significant disconnect between buyers and sellers over valuations.
O. Paul Corley Jr., a partner at Thompson & Knight, said sellers, especially small community banks, will find the M&A environment challenging this year, but said plenty of pressure exists to sell.
“There is owner fatigue and management/ownership is getting older,” said Corley, who attended the Commerce Street Capital conference. “Sellers just haven’t been able to come to terms with lower prices, and the buyers are getting pretty picky.”