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Bank M&A

SMS Financial’s M&A program assists institutions looking to acquire or be acquired. We work closely with investors, bank holding companies, banks and advisory firms to provide third party valuation services and a well-capitalized partner necessary to ensure the smooth execution of a merger, acquisition or recapitalization.

Our firm’s willingness and ability to acquire any size or type of distressed loan makes SMS the perfect “bad bank” partner. Unlike many distressed debt companies, we are privately held and NOT bound by boards, regulations or investor prospectuses—allowing SMS to be as creative and flexible as necessary. Our 25 years of experience makes us comfortable with even the most complicated and troubled loan portfolios, comprised of nearly anything from secured and unsecured CRE, C&I and business asset lines of credit, to judgments, deficiencies, charge-offs and residential paper.

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Banks and bank holding companies seeking to…

…grow via acquisition can broaden their buyout targets and footprint knowing that SMS will absorb a less stable institution’s performing, sub-performing or non-performing portfolio, which may have originally made the acquiree less desirable or accretive to the acquirer.

…be acquired can improve their appeal to buyers by purging toxic paper, improving asset quality and reducing loan loss provisions by working with SMS on a direct trade—turning static, decaying assets into real capital that can be redeployed.

…exit FDIC loss share agreements can count on SMS to move quickly, execute without fail and acquire a wide array of notes (CRE, C&I, judgments, deficiencies, charge-offs) reducing the disposition times and transactional costs associated with cherry picking and selling to multiple specialty buyers. Our joint venture partnership with the FDIC makes SMS unique due to our extensive relationship and approved buyer status.

Legal firms, advisory groups and investment banks…

…working with banking clients to complete a merger, acquisition or recapitalization can count on SMS to participate in a side-by-side transaction as the “bad bank”, allowing institutions to emerge with a larger deposit base and a healthy, performing portfolio.

…providing buy-side or sell-side services to large institutional investors can expand their client’s investment horizon and acquisition targets knowing that SMS will participate at the closing table—acquiring all small balance accounts and loans which may be outside the scope of a fund’s core investment criteria, i.e. a CRE investment fund holds all CRE notes and divests all C&I, judgments, deficiencies or charge-offs to SMS.

…representing owner/operators and investors who are in bankruptcy, in a distressed circumstance, or are looking to acquire distressed assets, can look to SMS for an alternative source of capital that maintains a long term outlook and focuses on restructuring and working with the borrower to keep their businesses operational and their buildings occupied.

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