Mike Ganly’s Post

Piper Sandler has decades of M&A experience in the depository space. Let’s set up a call with our CU focused M&A bankers. “As credit unions grow larger, the sector's mergers are growing, too. The largest credit union deal ever was announced in 2024, and experts expect the deals to only get bigger. The credit union market is consolidating, following the same path as community banks in years past: More assets have been sold by credit unions year to date in 2024 than in the past 10 years, according to S&P Global Market Intelligence data. Credit union M&A experts foresee more large credit unions to merge in the coming years, as expectations for technology advancement, footprint growth and abundant capital favor larger institutions. “ https://lnkd.in/eMY-SYkN

🌟 Choose a Better Financial Future! 🌟 Choose local banking. Choose affordable loans. Choose keeping your money in your local community. Choose supporting your neighbors. Choose a Credit Union that invests right back into where you live. Choose making a difference with every deposit and withdrawal. Choose a financial partner who sees you as more than just an account number. Choose community commitment over corporate profits. Choose hands-on help over distant call centers. Choose walking into a branch where everyone knows your name. Choose safety and stability. Choose helping local businesses flourish. Choose building stronger schools and safer streets with every interest payment. Choose our Credit Union. Choose strength. Choose resilience. Choose to support the people around you during the cost of living crisis. Choose a future where everyone thrives. Choose a community that works together, grows together, and succeeds together. Choose Us. Your money, your community, your credit union. #ChooseLocal #CommunityBanking #CreditUnion #FinancialEmpowerment #LocalImpact #WestOfScotland

While bank mergers have slowed credit union mergers continue to pick up steam. What does it mean to you, your job, your career, your company? If a bank does sell often times the buyer is a credit union. Here are some questions to consider as we all try to understand this growing trend: 🔹 Will their members approve all these mergers or will more be like the Centra -Hoosier Hills merger that was voted down (see article in comments) by its members? 🔹 Will they continue to buy more community banks where the members can't vote them down and they get commercial and treasury acumen (see post in comments section)? 🔹 Where will the must have size for a credit union be to in order to survive in this new age? 🔹 Will credit unions be able to maintain their non-profit status as they become more bank like? What culture fits your goals best a bank or a credit union? Are the differences becoming smaller? How can your company hire strong talent from credit unions in this process and take advantage of the opportunity? #mergersacquisitionsdivestitures #mergersandacquistions #mergers #bankingindustry #banking #banks #creditunions #creditunion #career #careerplan #jobsearch #jobgrowth #growth #businessbanking #commerciallending #treasurymanagement

🌟 BREAKING NEWS 🌟 Big changes in the credit union world! 🏦 Launch Credit Union and Community Credit Union of Florida have announced a merger, combining resources to better serve their members. With the tough operating environment for smaller credit unions, could this be the beginning of a trend? 📊 📰 Read all the details here: https://bit.ly/3MBpgdw #CreditUnionMerger #FinancialServices #CreditUnionNews #Tyfone

When Mergers Hide the Mess... Ever wonder why some credit unions merge? Spoiler alert: it’s not always about economies of scale or regulatory hurdles. Sometimes, it’s just plain ol’ ineffective management and weak board oversight. Take, for instance, a recent merger that went down on June 30th. This credit union’s CEO had been at the helm for over 20 years. Candidly, the first decade of his administration was amazing. However, the last decade saw a nosedive in asset quality and earnings, thanks largely to a mismanaged indirect auto and unsecured signature loan portfolio. And it wasn’t a sudden plunge—this was a slow, steady decline that could’ve been reversed if the CEO or Board had taken decisive action. But the CEO sought an exit instead of facing the music or making the required changes. He reached out to a billion-dollar credit union, arranged a sweet post-merger payout, and launched a slick marketing campaign to convince both members and the board that merging was the only option. It’s like using fire to cover up a crime – in this case, the poor performance was the crime, and the merger was the fire that erased the evidence. (Interestingly, I am referring to a specific credit union, yet this scenario could easily apply to about 40 mergers over the last two years.) If you’re a CEO looking at your June 30 numbers and have concerns about your earnings, liquidity, asset quality, or regulatory changes, remember that there are numerous ways to be part of the solution that allows your charter to survive and thrive. I want you to retire happy, healthy, well-compensated, and with your charter intact. Bet on yourself... If your strategic planning and operational consultant can’t adeptly discuss the unrealized losses in your investment portfolio, the potential additional allocations to your allowance, the weaknesses in your talent pipeline, the rising risks in your MBL portfolio, and the need to lower the average cost of acquiring new members—all while incorporating these elements into your strategy and operating plan—then what are we doing? SWOT analysis and big hairy goals just aren’t enough anymore. Experience the difference. Contact us today to schedule an exploratory conversation. #AskSynergy #ExperiencetheDifference

The M&A Frenzy Of 2024 Is Just Getting Started https://lnkd.in/gmTi7v8N #mergersandacquisitions #dealmaking #finance #negotiations #tacticalexecution #strategicplanning #performancemanagement #investment #partnershipdevelopment #pandlmanagement

Vedder Price is pleased to share that our client Byline Bancorp, Inc. has signed a definitive merger agreement to acquire First Security Bancorp, Inc. and its subsidiary First Security Trust and Savings Bank in a $41 million cash and stock transaction. The deal, expected to close in 2025, aims to enhance Byline’s loan and deposit portfolios. The Vedder Price transaction team was led by Shareholders Daniel McKay, James Morrissey and Jennifer Durham King and Associate Nicholas Zlevor. Read more on our website below. #MergersAndAcquisitions #ChicagoFinanceNews #FinancialInstitutions

A surge of significant M & A announcements indicates a ramp-up in dealmaking activity in 2024 following a subdued start to the year. With declining interest rates, bullish stock markets, and robust corporate balance sheets, the stage is set for an M&A boom. Read on here: https://lnkd.in/gnz-Vsk5 #finance #venturecapital #investing #innnovation #technology Forbes

~ 𝐒𝐜𝐫𝐨𝐥𝐥𝐞𝐫 𝐨𝐟 𝐭𝐡𝐞 𝐃𝐚𝐲 ( 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧, 𝐃𝐚𝐲 𝟏𝟔) 𝐋𝐄𝐕𝐄𝐑𝐀𝐆𝐄𝐃 𝐁𝐔𝐘𝐎𝐔𝐓 (𝐋𝐁𝐎) 𝐀𝐍𝐀𝐋𝐘𝐒𝐈𝐒 A leveraged buyout (LBO) is a transaction in which a company or group of investors (e.g. private equity fund) acquires another company using a significant amount of borrowed funds or debt. The acquired company’s assets serve as collateral for the debt; hence the term “leveraged.” The LBO analysis generally provides a “floor” valuation for the company, and is useful in determining what a financial sponsor can afford to pay for the target and still realize an adequate return on its investment. 𝐀𝐈𝐌 𝐎𝐅 𝐋𝐁𝐎 : The aim of the LBO model is to enable investors to properly assess the transaction and earn the highest possible risk-adjusted internal rate of return (IRR). 𝑬𝒙𝒂𝒎𝒑𝒍𝒆𝒔 𝒐𝒇 𝑺𝒖𝒄𝒄𝒆𝒔𝒔𝒇𝒖𝒍 𝑳𝒆𝒗𝒆𝒓𝒂𝒈𝒆𝒅 𝑩𝒖𝒚𝒐𝒖𝒕𝒔 : 𝟏) 𝐆𝐈𝐁𝐒𝐎𝐍 𝐆𝐑𝐄𝐄𝐓𝐈𝐍𝐆 𝐂𝐀𝐑𝐃𝐒 : In 1982, Wesray Capital acquired Gibson Greeting Cards for a purchase price of $80 million. The deal was financed with $1 million in cash, while the rest was borrowed by issuing junk bonds. A year and a half later, Wesray sold Gibson Greeting Cards for $220 million, with investors earning about 200 times their initial equity invested. 𝟐) 𝐇𝐈𝐋𝐓𝐎𝐍 𝐇𝐎𝐓𝐄𝐋𝐒 : In 2007, Blackstone Group purchased Hilton Hotels for $26 billion in an LBO, financed through $5.5 billion in cash and $20.5 billion in debt. As the financial crisis of 2009 began, Hilton had major problems with declining cash flows and revenues. However, subsequent to that, Hilton was able to refinance itself at a lower interest rates, operations improved and Blackstone sold Hilton at a profit of almost $10 billion. 𝟑) 𝐒𝐀𝐅𝐄𝐖𝐀𝐘 : In 1986, Kohlberg Kravis Roberts completed a friendly LBO of Safeway for a total price of $5.5 billion. Safeway's board of directors gave consent to the buyout to avoid hostile takeovers from Herbert and Robert Haft of Dart Drug. The deal was funded mostly with debt, and Safeway had to divest some of its assets and close unprofitable stores. In 1990, Safeway was taken public again with improvements in its revenues and profitability metrics. KKR earned almost $7.2 billion on an initial investment of $129 million. SOURCES : The Institute of Chartered Accountants of India Corporate Finance Institute® (CFI) Macabacus Inc. Investopedia jaro education #LBO #BUYOUT #DEBTFINANCING #CORPORATEVALUATION

After a year of subdued activity, the private M&A market is showing signs of life, especially in the middle market sector. Despite overall U.S. deal activity remaining steady in Q4 2023, there's a glimmer of hope with a slight uptick in multiples and deal volume. What's driving this? Possible Fed rate cuts, resilient economy, and PE firms with cash ready to invest. Get our full analysis at the link: https://lnkd.in/gef2Fk7X #mergersandacquisitions #familybusiness #middlemarket #transactions