Milwaukee, WI (PRWEB) June 08, 2012
The prime opportunity is now for investors to consider investing in a Community Bank for significant value and high return on investment. Lakes Business Group, Inc. has experienced a recent and high demand for bank related sales.
As the economy is improving and the banking industry and lending is now beginning to grow again, current deep discounted book values of banks will not last. The stock book value of most banks has been drastically written down over the past few years due to banks capital being decimated by loan losses.
Also, increased capital ratio requirements by the FDIC and OCC are forcing banks to raise capital. Banks need new equity capital to replenish. So theres a great opportunity to capitalize to the extent the economy and property asset values have stabilized and are beginning to improve. Historically banks have traded at 2 to 4 times book value. Right now there is a window of opportunity to invest in community banks at approximately .5 to .8 times book value providing significant upside to an alert investor.
History again shows that with a recovering economy and as healthy loan growth does indeed improve, this will provide investors an added multiplier effect to an already attractive return. Investors should also consider that now is the beginning of a pending wave of bank roll-up mergers and consolidations that will cause even more increases in bank book values.
When investing in a bank, investors must know the banks management is experienced in making good loan decisions and the banks business plan is successful and stable for the future. Also, a good bank investment is one in which the bank needs to have good assets and the investment dollars used are at an attractive valuation.
Community bank investments can add up to unique opportunities with significant high returns.
Larry Heck at VR – Lakes Business Group, Inc. can help facilitate the sale or capital infusion into Community Banks. As a Merger and Acquisition Advisor, Larry specializes in the Banking industry. Please contact him if you have questions or would like to discuss further.
M & A Advisor
VR Lakes Business Group, Inc.