This week Banking Strategies magazine published our article discussing what we believe is the coming wave of consolidation in the banking industry. Sellers, the management of acquiring banks, and Private Equity investors are the key players on the M&A Gameboard and need to assess their tactics and strategies.

The Coming M&A Explosion

Mergers and acquisitions are likely to heat up considerably in the next year or so as potential sellers face the realities of today’s market.

The next 12 to 18 months will be a time of massive consolidation in banking with both sellers and buyers ready to do deals – as was seen in the recent acquisition of Marshall & Ilsley Corp. by Bank of Montreal. The gap between seller expectations and buyer offers is closing, largely due to more sellers viewing themselves as lacking better options.

The M&A environment is driven by a “perfect storm” of bank performance issues, external factors limiting profitability, strengthening competitors and the personal desire of some bank stakeholders to sell. Many private equity (PE) buyers have investment dollars they want to put to use while many community and regional banks view acquisitions as a more likely growth path than trying to grow organically…