M&A Experts: Bank Deals Challenged by Lower Valuations and Picky Buyers in 2015

© 2015 The Texas Lawbook.By Kerry Curry (May 4) – Bank mergers and acquisitions may prove more challenging to get done this year if the oil sector doesn’t bounce back, according to financial M&A experts, who say there is a significant disconnect between buyers and sellers over valuations. In 2014, 287 M&A deals involving banking institutions were announced nationally compared to 223 in 2013, according to SNL Financial. That equates to $18.6 billion in deal value last year compared to $14.2 billion in 2013. There have been 83 transactions announced so far, which annualizes to 268 or an eight percent decline from one year ago. The average price to tangible equity is 159 percent, according to SNL. “If you are a seller, you are reluctant to take currency until you understand what the long-term stabilizing trend will be on oil prices,” Commerce Street Capital Managing Director C.K. Lee said last week during the financial institution’s 13th annual banking conference last week in Irving. “Will it stabilize at $40 or $50 or $75, and what impact will that have on your buyer?” Lower oil prices may have thrown a wrench into some deals, but for every deal walking out the door,…