Small Banks for Sale, Buy Small Community Bank in USA, Banks for Sale- USA

Jun. 10, 2010 1:02 AM ET
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Contributor Since 2009

Robin Trehan– Mr. Trehan has a wide array of experience in the markets and the business environments of America, Asia, and Europe. He is an industry consultant in the field of mergers and acquisitions and private equity capital. Robin Trehan has a bachelor’s degree in Economics and Public Administration, a master’s degree in International Business Finance and Marketing from ENPC School of International Management (France), and a Master’s degree in Electronic Commerce from Grenoble Ecole De Management (France).

Mr. Trehan has been involved with multiple entrepreneurial ventures in a vast spectrum of industries especially in electronic businesses, e-payment, gaming, and financial sectors for over two decades. He is an expert in turnaround and repositioning of assets as well as simplifying business systems processes to bring in a complex structure. His current focus is on bringing blockchain tech to the masses by integrating the fintech industry and traditional banking. He has in-depth experience in the banking, payments, and financial sector in the USA.

His focus is on Banking, Venture Capital, Finance, e-Business, and bringing blockchain to the traditional banking sector.


Small Banks for Sale, Buy Small Community Bank in USA, Banks for Sale- USA
By Robin Trehan, B.A, MIB, MBA 

According to Sun Tzu, The art of war- Every battle is won before it is ever fought. Same goes for while buying a bank or financial institution. A deal can have a hidden value and how one breaks the value and brings in the value is up to the buyer to realize. Here are series of steps I will suggest once one has identified a bank and it fits the initial criteria.
1. Putting an offer sheet with basic terms and conditions for the due diligence.

2. If the offer is accepted hiring a good law firm and accounting firm for the preparation of

1. Definitive Agreement.
2. Doing due diligence.

3. During the due diligence process, following questions should be put in picture.

• A copy of audited financial statements for the past three years.
• Does the bank own or lease the space that it occupies? If it leases the space, what is the remaining term?
• Regarding the loan on the book, provide a breakdown by type, rates, and maturity.
• The investment the bank owns. The breakdown by type, rates, and maturity.
• The deposit on the book. The breakdown by type, rates, and maturity.
• A brief description of the customers.
• Who is the present management and how the bank board is organized.
• A list of shareholders.
• Analysis of CAMELS- Capital, Asset quality, Management, Earning, Liquidity and sensitivity to market risk.

4. After the acceptance of the Definitive Agreement buyer places money in escrow.

5. Buyers seek regulatory approval within 5-10 days after the execution of the Definitive Agreement.

6. Seller seeks its shareholders approval to the transaction as soon as the Definitive Agreement is executed and the deposit of funds is received.

7. Buyer has to in the mean time get the regulatory approval.

8. Closing take place and if possible making sure that present management stays there for two to three months. Best deals are sometimes derived and made. Stick to the fundamentals, good things sometimes takes time, and lots of hard work.
Small Banks for Sale, Buy Small Community Bank in USA, Banks for Sale- USA

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