Informed Decisions is dedicated to the service of community banks and their goal to maximize shareholder value while remaining independent. We provide analytical support to identify the risk and return variables critical to determining value. The modeling structure demystifies the valuation process and provides the basis for effectively communicating the process and conclusions to all interested parties.
Informed Decisions delivers independent, objective financial analysis and valuation services with the highest level of integrity and professionalism. We bring together the necessary components to accurately complete the analysis, effectively communicate the results, and successfully complete the project to support our clients in their decisions.
Informed Decisions delivers independent, objective financial analysis and valuation services with the highest level of integrity and professionalism. We bring together the necessary components to accurately complete the analysis, effectively communicate the results, and successfully complete the project to support our clients in their decisions.
Services
Rich has thirty years of experience in financial management and consulting, including accounting, financial analysis, business valuations, and mergers and acquisitions. He served as Director of Valuations with Alex Sheshunoff & Company Investment Banking for six years.
He was responsible for delivering nearly 200 bank valuations each year for ESOPs, shareholder agreements, charitable gifts, estate taxes, ownership grants, fairness opinions, corporate reorganizations, and dissenter rights cases.From 1990 to 1999, Rich was in mergers and acquisitions with Norwest Corporation, now Wells Fargo & Company.
He was responsible for delivering nearly 200 bank valuations each year for ESOPs, shareholder agreements, charitable gifts, estate taxes, ownership grants, fairness opinions, corporate reorganizations, and dissenter rights cases.From 1990 to 1999, Rich was in mergers and acquisitions with Norwest Corporation, now Wells Fargo & Company.
Community banks have a strong commitment to their stakeholders: service to customers, support for employees, and a fair return to shareholders. Some with charters dating back to the 1800s have persevered through early money panics, the Great Depression, and subsequent recessions; others with shorter histories still experienced the farm crisis and S&L crisis.
The value of an asset is a function of the future benefits to be derived from its ownership. In finance, these benefits are the cash flows that drive shareholder distributions. In banking, profitability drives the regulatory capital that, in turn, drives shareholder distributions and value. Focusing on community service can limit a bank's profitability and its intrinsic value as a stand-alone, going-concern.
Bankers address risk and return every day when pricing deposits, funding loans, and purchasing securities. Value as a function of risk and return is the fundamental concept underlying all financial analysis. Financial managers commonly use this as the basis for maximizing shareholder value. Many banks have a formal strategic financial planning process that sets forth specific goals, execution plans, and financial projections.
Value as a function of risk and return is a simple concept and the related financial modeling is straightforward. Together they provide a structure for evaluating the alternatives for increasing shareholder value. Determining the appropriate cash flows and risk complicates the analysis.
For example, a bank's intrinsic value can be determined from its strategic plan but its acquisition price must reflect the acquirer's expected cash flows and perceived risk.Bank management is commonly involved in determining the relevant inputs to be used in the financial model. As a result, presenting the analysis and conclusions is generally less formal when the valuation is for management's internal use.
For example, a bank's intrinsic value can be determined from its strategic plan but its acquisition price must reflect the acquirer's expected cash flows and perceived risk.Bank management is commonly involved in determining the relevant inputs to be used in the financial model. As a result, presenting the analysis and conclusions is generally less formal when the valuation is for management's internal use.
Reviews
Be the first to review Informed Decisions.
Write a Review
