Cantor Insights 2026 Digital-2 - Flipbook - Page 3
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How many feasible or likely acquisition targets is your bank currently assessing?
Source: Bank Director’s 2026 Bank M&A Survey
47%
37%
“Keeping them on, keeping incentives
aligned with what you want them to ac-
14%
complish, but making sure roles are clear.
That’s important to get right up front.”
It gets trickiest at the top, as the seller
1%
1-4 targets
None
5-9 targets
10-20 targets
bank’s CEO is no longer in charge. But
it’s incumbent upon buyers to find a “role
where they’ll excel without diluting the
power that the surviving management
team has,” Heaton says.
Intelligence. Regulatory roadblocks seem
to be easing, paving the way for big and
small deals alike.
But banks’ own roadblocks may throw
combined team.”
Emphasizing a collaborative approach
to modeling synergies is trickier when
It’s where bankers’ most valuable currency — trust — comes in handy.
“The best deals are the ones where the
there are several competing offers on the
bank CEOs have had a long-established
off negotiations — and those can only be
table. But even in an auction, the ability
relationship with one another,” Heaton
identified by getting to know a bank’s
to develop effective relationships early on
says. “They know each other. They trust
story.
goes a long way.
each other.”
“There’s a lot of homework to be done
“If you are a bank CEO that has a repu-
on the target,” says Chris Sanger, head of
tation for being a good acquirer with little
communication skills remain key to get-
FIG at Cantor. “Every bank target is differ-
ego and high self-awareness, the word of
ting them done. Sellers are often hitching
ent, and they’ll all have different specific
mouth gets out there — and people will
their wagon to the buyer’s shares, making
hot-button issues.”
want to do business with you,” Heaton
it vital for the latter to frame the deal as
says. “Reputation is huge.”
“more attractive than staying sharehold-
Some CEOs want their bank’s name to
survive a merger. Others care less about
the brand, perhaps because it was the
product of a series of roll ups. Headquar-
Mergers are ultimately financial, but
ers in their current bank without insult-
Building Trust
Sometimes the trickiest negotiations
ing them,” Heaton says.
He points to the example of Bob Wilm-
ters negotiations can prove tricky, as
revolve around the future for executives
ers, the legendary late CEO of M&T Bank
can a seller’s desire to maintain a strong
at the target bank. Keeping them motivat-
who made the Buffalo-based bank into
presence and employee base in their
ed may be critical for mergers to achieve
a regional powerhouse. Wilmers often
hometown.
their promise, since their relationships
avoided paying big premiums on deals —
with clients and employees are vital. But
and instead relied on showing the bank’s
ily have to happen only at the target,”
clearly laying out their responsibilities
history of steady returns.
Sanger says. “They can happen across the
and boundaries is also necessary.
“Headcount synergies don’t necessar-
combined franchise. You can approach
“This is where culture is incredibly
Even in a merger of equals, Heaton says,
there’s always a winning franchise. “The
the situation from a position of fairness
important — making sure it’s collaborative
trick is to declare victory without making
— that we’re going to take the best of the
without being dysfunctional,” Sanger says.
the losing side feel inferior,” he says.
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