Financial institutions are not only competing for customers, but have increasingly been the focus of regulatory changes since the crisis on the financial markets. These changes include CRD IV/CRR (Basel III) and, in Germany, the fourth amendment to MaRisk among others. Almost simultaneously, the new accounting standard for financial instruments, IFRS 9, and the concept of banking supervision at European level, including the instruments of bank and treasury functions, are being implemented. The stricter or new rules do not only concern large banks, but also affect smaller institutions such as savings banks and credit cooperatives.
All institutions currently face the challenge of aligning their operations with the new requirements. In this environment, M & A transactions can represent a useful instrument to optimise capital allocation and improve the competitiveness of the institution as a whole.
BDO Corporate Finance | Financial Services supports banks, winding-up agencies and investors in a variety of fields – from strategy and multiple-year planning up to and including M & A transactions and regulatory questions. We are an integral part of BDO’s Industry Expertise Centre Banks and Financial Service Providers.
With our publications, we contribute towards establishing transparency in terms of current regulations and action requirements. Through our work on committees, at conferences, at universities and through our integration with a leading audit and consulting firm, we always have access to current expertise.
Examples of our current advisory mandates for banks include:
- Supporting an institution in selling its credit portfolio (M & A sell side)
- Buy-side due diligence consultancy in the scope of a bank acquisition
- Valuation of a bank in the scope of a squeeze-out
- Advisory to a credit institution in the preparation of a restructuring plan
- Negotiation support for a foreign investor in an acquisition process
- Support in founding a financial institution
- Support for a ‘bad bank’ in implementing business planning
- Strategic consulting for an investment bank