While only 20 percent of M&A deals in the past five years were in-market, banks considering this strategy could benefit greatly from this plan. However, there are special risks that can arise from a merger of this kind.
In this video, C.K. Lee of Commerce Street Capital explains both the pros and cons of in-market mergers by addressing these questions:
- Why do in-market mergers?
- What should you consider before agreeing to an in-market merger?
- What sort of cost savings and earnings accretion should you expect?
- What are some possible drawbacks to in-market mergers?