The Due Diligence Process: Safety Net or Nuisance?
Steven I. Davis
Chapter 5 in Bank Mergers, 2000, pp 51-55 from Palgrave Macmillan
Abstract:
Abstract An integral part of the merger process is the preliminary screening for asset quality and other problems once a merger has been agreed in principle. Such a vetting would seem to be crucial in a business like banking with its central focus on risk. And another bank familiar with these risks, especially one with such a profound interest in the outcome, would appear to be a most effective agent to uncover problems and evaluate the findings. Finally, the example of several asset quality bombs which in the past have exploded shortly after a bank merger closing would seem to constitute a red flag for those undertaking new transactions.
Keywords: Market Risk; Supervisory Board; Saving Bank; Bank Merger; Merger Process (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50939-9_5
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DOI: 10.1057/9780230509399_5
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