The Risk of In-Market Mergers

May 22nd, 2015

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?

C.K. Lee is a managing director in the financial institutions group, capital markets division of Commerce Street Capital, LLC.  In that capacity, Mr. Lee assists financial institution clients with M&A, capital raising, balance sheet restructuring, business plan development and regulatory matters.