There is a lot that goes into an acquisition of a bank. Many people from many different parties are all interested in doing the best thing for their bank. In a perfect world, everyone would walk away at the end of the day happy, but given the current economic situation we are in, that happens rarely, if ever.
Though it is believed once the papers are signed, and the deal is done, so is the hard work. If there’s one thing I learned this week at AOBA13, is that is far from the truth. I have learned that much of the hard work begins after day one of a merger. There are many social and cultural aspects that need to be ironed out. While these topics are important to discuss during negotiations, they really come to light after the fact.
That is where the component of non-competes come into play. Yesterday there was a session focused on Non-Competes & Change of Controls. It featured Doug Faucette from Locke Lord LLP, Flynt Gallagher from Meyer-Chatfield and Theodore Sharp from Pearl Meyer & Partners.
They expressed that these particular negotiations can be very complicated and hard to get through. However, it is critical to mitigate properly so there are no surprises. If companies are proactive in this approach, they can do a lot to minimize or prevent penalties down the road.
Finally, I am please to reveal to you that our surprise entertainment was…. Singing waiters!