While it would be easy to fill an entire volume of textbooks with specific items that need to be discovered, assessed and agreed upon prior to exploring a bank acquisition, the most common issues for credit unions seeking this type of growth opportunity tend to fall within three main areas: Why a bank and not a credit union, the financial structure of the transaction and regulatory concerns. Here, we'll address some of the most common questions the ALM First team receives.

1. Why a Bank and Not a Credit Union?

We often hear credit unions say that they can make a business decision to buy a bank and realize synergies immediately. However true this may be in some cases, the motivations and goals of both parties need to be examined. Yes, you may be able to buy out a bank's board of directors, but what are you buying exactly? Is it the physical location, the commercial lending expertise, the business services, technology, other products and services, or is it financially motivated in terms of liquidity or something else?