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Mistakes To Avoid When Acquiring A Bank

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Question: 
Our bank is negotiating to purchase another bank. This would be our first acquisition. Are there some common mistakes we should try to avoid?
Answer: 

Do not make major officer/employee changes too early. Maintain a positive relationship with the staff of the acquired institution.

Be sure to consider contracts in force, particularly data processing and employment.

Utilize professionals to evaluate credit quality and regulatory compliance risks.

First published on BankersOnline.com 3/19/01

First published on 03/19/2001

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