Financial Advisory

Senior managers at financial institutions must consider numerous stakeholders: shareholders, customers, employees, local communities, and regulators. Achieving scale can benefit all stakeholders if in so doing the financial institution can operate more efficiently, offer more competitive products and services, serve a larger geography, and increase their capital base. So often, though, financial institutions’ rush into an ill-conceived combination that ultimately erodes shareholder value.

Principals of The Kafafian Group have decades of experience successfully executing merger & acquisition transactions on behalf of clients. Our experience gained at boutique and regional investment banking firms gives us unique perspectives in serving clients’ M&A needs, focusing more on the fit of a proposed merger rather than on simply generating a transaction. We do not typically propose, or "pitch", transactions to our clients but rather respond to their request for assistance. Consistent with our other consulting services, we focus on how a contemplated transaction will help our clients perform better and improve franchise value. Mergers and acquisitions, from our perspective, is part of executing strategy. We focus on recommending only those transactions that fit a firm’s strategic objectives.

If you are contemplating a merger transaction, consider what we can offer:

1. Focus - Many financial advisors are focused on generating a transaction. Although we believe commitment to a transaction is important in completing it, we place emphasis on evaluating how a particular transaction will help our client perform better, and then pursue the transaction with the necessary vigor to get it done. If, through careful analysis, a proposed transaction will not help a client execute its strategy, our responsibility is clear. We are a consulting firm dedicated to helping our clients perform better. Generating transaction volume does not indicate if we have been successful in our endeavor. Financial performance does.
2. Experience - Our professionals are bankers, consultants and investment bankers. This unique blend of experience helps us analyze potential merger transactions with a greater depth than how it will impact earnings per share or book value, although these are important. We consider the operational and cultural integration process and the risks associated with putting two organizations together. We explore hurdles that can distract management from achieving their strategic objectives. Merger discussions with our clients’ Board of Directors and senior managements typically go far beyond the financial issues, and our clients have appreciated our candor.