Client Situation
A bank holding company was #1 and #2 in deposit market share in its two states of operation but was facing competitive and potential acquisition threats from competitors. The company wanted to review its operations to respond to the potential threat.
Solution
A E78 executive, as head of strategic planning and business development (M&A), assisted the company’s top executives in reviewing and resetting strategy and operations goals. He led a team in an analysis of approximately two dozen competitors across the country. Financial performance, business line composition and stock price performance were all gathered and analyzed, and a profile of ‘breakout’ companies was built along with a gap analysis of those companies’ structure and performance compared to the client. He also designed and implemented, with top executives’ participation, a total-organization restructuring to pursue a breakout strategy. Business lines were redefined from legal/state boundaries to company-wide businesses. Three businesses without natural geographic assets were repositioned and launched as national businesses to boost visibility and earnings momentum. Under his leadership key acquisitions were identified, negotiated and closed in two contiguous states to expand the company’s base business.
Results
- The company grew from $19 billion to $33 billion in assets over seven years
- Ultimately, the company was sold to a consolidating acquirer at a substantial stock premium
