How California Banks Can Benefit From Acquisitions and Mergers

By combining with larger companies some businesses can profit, and even avoid having to completely go out of business.  Although business mergers and acquisitions can be quite complex and time consuming, the end result can be very beneficial – and often profitable.

One recent example is the merging of two California banks, First California Financial Group and PacWest, who bought First California after beating out the competition.  While this merger did result in some bank branches closing down, others were able to combine.  First California was considered a money making system, and many believe that the acquisition will prove to be very beneficial for PacWest Bancorp.  However, as usual there were a few issues that weren’t revealed at the onset of the merger.

One such issue is the fact that First California Bank reportedly faced legal penalties regarding bank cards, and the bank’s failure to disclose the fees associated with the card to customers; the bank also allegedly failed to properly represent how the card would work.  Now that PacWest has acquired the bank, it seems the liabilities will be their responsibility.  Still, most feel that the issue is relatively minor, and not serious enough to cause a substantial long-term negative impact for the merger of the two banks.  Perhaps if this merger proves to be successful, we will see more banks as well as other companies merging to the benefit of both.

Companies can thrive by merging with others, however it is critical to gather a substantial amount of information and facts before negotiating a merger or acquisition.  Knowing what the prospective outcome will be and having the right legal information in regards to business laws in California is a must before you proceed forward with what you believe will be a profitable business venture.  As trusted Los Angeles business attorneys, the team at Spotora & Associates can help you make the best decisions regarding mergers and acquisitions, or other decisions relevant to the future success of your company.

This entry was posted on Wednesday, August 7th, 2013 at 9:22 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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