CHICAGO (November 9, 2016) – A poll conducted by Baker Tilly Virchow Krause, LLP (Baker Tilly) indicates that more than 71 percent1 of banks find compliance with regulations the most challenging topic for their organizations today, while internal controls and tax topics were each selected by only 14 percent2 as the most challenging. Baker Tilly recently held an educational webinar, “Key items in each stage of bank M&A activity,” to assist financial institutions in understanding important tax, accounting, and regulatory compliance topics during a merger or acquisition.
“It doesn’t surprise me that our poll finds so many financial institutions struggling with regulatory compliance,” Christine Anderson, CPA, CITP, partner and firm leader of Baker Tilly’s financial services practice, said. “Increased regulation can squeeze profitability because of the additional human capital, systems, and processes needed to comply. It is one of the top factors we are hearing from community banking executives in decisions to merge or be acquired.”
“There has been significant merger and acquisition activity in the banking industry over the last few years,” Timothy Kosiek, CPA, partner and Baker Tilly’s banking practice leader, said. “This trend is expected to continue with financial institutions facing high costs of regulatory compliance along with decreasing margins and capital levels. It’s an opportunity for bank executives to revisit their long-term strategies.”
The Baker Tilly webinar discussed:
- Reasons behind increased M&A activity in banking
- The three stages of M&A activity
- The most important financial, tax and regulatory compliance items during those stages
- Why these items are critical in a successful merger or acquisition
Presentation slides and a recording of the webinar are available at bakertilly.com/insights/key-items-in-each-stage-of-bank-ma-activity.
About Baker Tilly Virchow Krause, LLP (bakertilly.com)
Baker Tilly Virchow Krause, LLP (Baker Tilly) is a nationally recognized, full-service accounting and advisory firm whose specialized professionals connect with clients and their businesses through refreshing candor and clear industry insight. With approximately 2,800 employees across the United States, Baker Tilly is ranked as one of the 15 largest accounting and advisory firms in the country. Headquartered in Chicago, Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 territories, with 33,600 professionals. The combined worldwide revenue of independent member firms is $3.4 billion.
171% of respondents answered “Regulatory compliance” to poll question during Key items in each stage of bank M&A activity webinar on Oct. 27, 2016.
214% of respondents answered “Internal controls” and 14% of respondents answered “Tax planning & filings” to poll question during Key items in each stage of bank M&A activity webinar on Oct. 27, 2016.