PwC's report provides our firm's point of view on the challenges in failed bank acquisitions and a framework that addresses the complex operational and accounting challenges associated with a failed bank acquisition.
The financial crisis has provided a strategic opportunity for healthy financial institutions to grow and expand in the US market through failed bank acquisitions. These opportunities, in our view, should to be approached in a manner that differs from normal M&A and/or organic growth strategies.
These deals present unique integration challenges that banks may not have encountered in previous acquisitions. Specifically, FDIC-assisted deals differ from other acquisitions in several notable ways:
These challenges can place considerable strain on the ability of the acquiring bank to successfully integrate the acquired bank. In particular, the acquiring bank will likely face issues in: