Is your bank interested in customer retention? How about new business?
As a mergers and acquisitions firm, we are frequently invited to introductory lunches by aggressive bankers looking for deal flow. They all tell us tell us “you are buying and selling companies and we have money to lend for those transactions!” While we enjoyed meeting them, they didn’t realize the inherent weakness in their value proposition. Having money to lend is great. But so does every other bank in town, and we’ve been approached by most of them.
Tired of picking up the check?
Closing deals is the name of the game… it’s how you get paid. Banking is a relationship-based business if there ever was one. Let’s talk about how you can create some real value in your banking relationships… not just to us but the people that really matter… your clients! To truly make a difference to your customers, you must bring more value to them than your numerous competitors.
One thing we learned very early in our existence: Every time a business changes hands, there are winners and losers. The winners are everyone associated with the buyers. The biggest winner among them is the the buyer’s bank. They make money in several ways:
- Acquisition Loan origination fees
- Acquisition Loan interest
- Payroll Services
- Merchant Services
- The additional daily deposits
The buyer’s suppliers, accountants and attorneys also gain valuable accounts.
The losers, of course are everybody associated with the seller. If you were the seller’s banker, gone with no notice are accounts you’ve likely nurtured for years. And a competitor of yours is now the beneficiary of your excellent service over the years.
We have never been involved in a transaction where the seller’s bank knew it was about to lose a large account. Bankers pride themselves on many things and so do Mergers and Acquisitions professionals. Discretion is our biggest client mandate. We do these deals under tight security. Rarely does anyone know that a company is going to be sold until the transaction is complete.
A relationship with Players Capital Group can help keep you on the winning side of this equation.
We are very active in the middle market. Our clients are usually generating between five million and a hundred million in revenues. They usually sell for no less than four times EBITDA. Nice business for any bank. Those are big loans and big daily deposits.
When you help a client grow by acquisition, you are adding value to your client relationship. He grows his business and you grow yours. In a business where it is very hard to distinguish yourself from your competitors, and almost impossible to develop a unique selling proposition, this is a very inexpensive way to increase business.
It costs you nothing to advise a client that owns twenty gas stations that we have ten available in the next town over that would fit right into his footprint, and that you’d be delighted to lend him the money for the acquisition. You need only keep your bankers informed of what we have available. Bankers that aggressively promote our mutual interests get first look and other perks. Ask us about them!
And while we can help you build your business, we can also help you keep it. You lose millions if not more to simple, easily preventable attrition. Ask us how we can help you reduce your attrition dramatically. You also lose millions more by passively allowing competitors to close deals and gain accounts that you could have easily had by being proactive. Your bank could experience tremendous added revenue by recognizing and methodically acting on the synergies between our respective occupations. It starts with our respective senior management developing and cultivating relationships, and then learning from and building on our successes. Depending on your corporate culture, what we are proposing can be as formal or as informal as it needs to be.
Let us help you bring real and dynamic value to your banking relationships. We love deals that are a win for everyone. The only way to do business!
Let’s prosper together!
If you would kindly fill out this form we will be in touch to tailor a specific plan to boost your revenues, help you retain customers and develop new ones!