Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
STRATEGIC PLANNING: KEYS TO A KICK BUTT PLAN
December 2, 2016
John C. Donnelly
Andrew C. Christians, CFA
WHY DO STRATEGIC PLANNING?
3WHY DO STRATEGIC PLANNING?
4
People in any organization are always attached to the obsolete - the things that should have worked but did not, the things that once were productive and no longer are.”― Peter F. Drucker
WHY DO STRATEGIC PLANNING?
5
Walking / Talking
Education
Occupation
Marriage
Family
Retirement
Estate Planning
PERSONAL STRATEGIC PLANNING
6
First Customers
Add Products
Time
Co
rpo
rate
Bu
sin
ess
Pla
n
Start/ Inherit Company
Expand Plant / BranchesAcquire
Businesses
Pass Company to Next Generation,
IPO, Sell or Merge Company
Volunteer / Philanthropy
CORPORATE STRATEGIC PLANNING
7FORCES OF CHANGE
OLD NEW
8FORCES OF CHANGE
OLD NEW
9
2009 15.8 million/mo. ---
2008 50 million ---
2006 317 million 30
2007 700 million 31
2004 1.8 billion 29
COMPANIES THAT DID NOT EXIST A FEW YEARS AGO
Source: Payscale.com
# OF USERS AVG. AGE OF EMPLOYEEYEAR EST.
CORPORATE STRATEGIC PLANNING – THE PROCESS
* And made popular by Lee Iaccoca
11CORPORATE STRATEGIC PLANNING
12
Use an outside facilitator (be wary of investment bankers!)
Off site (go off site)
Plan overnight with dinner / golf / recreation
Bring in outside speakers
Have a very tight agenda
PLANNING PROCESS - DONNELLY PENMAN OBSERVATIONS
13
Full Board planning session in Washington D.C.
Tour and visit Federal Reserve, Deputy Director in the Board of
Governors Room
Visit with American Bankers Association – EVP
Cam Fine of ICBA presented to the Board
Tour of new branch office
Guest speakers:
Technology expert
Economist
Investment banker
Student loan expert
JOHN DONNELLY’S CAROLINA PREMIER BANK BOARD RETREAT
CASE STUDY: CAROLINA PREMIER BANK BOARD RETREAT
This is not just a budgeting meeting
30,000 ft. issues:
Independence vs. consolidation
Capital planning (more on this later)
Financial objectives
Regulatory issues
Technology
New products and markets
Succession
Review progress of last years plan
Executive session (no management in room!)
CEO cannot dominate the meeting!
14THE PLANNING PROCESS – OTHER OBSERVATIONS
1. Having a plan simply for plans sake.
2. Not understanding the environment or focusing on results.
3. Partial commitment.
4. Not having the right people involved.
5. Writing the plan and putting it on the shelf.
6. Unwillingness or inability to change.
7. Having the wrong people in leadership positions.
8. Ignoring marketplace reality, facts, and assumptions.
9. No accountability or follow through.
10. Unrealistic goals or lack of focus and resources.
Source: Forbes Magazine
1510 REASONS STRATEGIC PLANS FAIL
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
Respected in community
Regulatory sanctions Acquire or merge Regulation / CFPB
Well capitalized Low capital Higher interest rates Predatory pricing
High valuation Little or no liquidity in stock
Dodd Frank reform Technology/ cyberspace security
Diversified revenue stream
No succession plan Establish new divisions
Millennials
Strong core deposits No strategic plan Republican Congress/White House
Lack of succession
Strong management High employee turnover
Hire talent from M&A displacement
Fintech
16STRATEGIC PLANNING SWOT ANALYSIS
Constituents
Customers
ShareholdersEmployees
17STRATEGIC PLANNING CONSTITUENTS
Constituents
Customers
ShareholdersEmployees
Employees
18STRATEGIC PLANNING: EMPLOYEES
Review performance of:
Key managers (CEO)
CEO (Executive Session)
Board of Directors (360°)
Review org. chart
Review depth chart at each senior position
Review compensation incentive plans
19STRATEGIC PLANNING: EMPLOYEES
20STRATEGIC PLANNING: EMPLOYEES
ESTABLISH HIRING CRITERIA
Hire from within
“Lift” from outside
Have a “Culture Statement”
Establish Loyalty Programs
Stock Ownership Programs
Employee Perks
Vacation Package
Maternity Leave
Work from Home
401-K Match
Sabbatical
Community college
Non-bank experience
College degree
MBA, CPA
Previous bank experience
ATTRACTING/RETAINING
REQUIRE CONTINUING ED.
Banking school
Professional Certifications
CPA, CFA, CFP, etc.
MBA or graduate degree
Continuing Ed. Programs
Strong leader
Clear reporting channels
Clear goals
Accountability
Reward accomplishments
Camaraderie
Relaxed dress code
Wellness program
Money, Money, Money
Source: Fortune Magazine
21FORTUNE MAGAZINE 100 BEST PLACES TO WORK
WHAT CAN WE LEARN?
Customers
22STRATEGIC PLANNING: CUSTOMERS
Constituents
Customers
ShareholdersEmployees
Do we have a specific game plan to attract customers?
Target criteria:
Geographic area
Customers by revenue
Industry types
Calling program and monitoring
Trade convention schedule
Marketing plan (print, email, LinkedIn)
Annual / semi-annual customer event (i.e. golf outing)
23STRATEGIC PLANNING: CUSTOMERS
24STRATEGIC PLANNING: CUSTOMERS
LOANS
Chief Deposit Officer
Treasury management
Remote capture
Mobile banking / app
Courier services
Pricing models/disciplines
Transactions vs.
relationships
Industry specializations
Flexible lending policies
Creativity
Service, Service, Service!
DEPOSITS
Shareholders
25STRATEGIC PLANNING: SHAREHOLDERS
Constituents
Customers
ShareholdersEmployees
26
Maximize earnings Conservative lending
Maximize ROE Maintain “well capitalized” status
Pay cash dividends Preserve capital for “a rainy day”
Grow assets Reduce reliance on C&D and CRE
Maximize shareholder value Run a safe and sound organization
SHAREHOLDER OBJECTIVES VS. REGULATOR OBJECTIVES
SHAREHOLDER OBJECTIVES REGULATOR OBJECTIVES
27
ALI VS. SONNY LISTON YOUR BANK
Age 22 ROAA 1.0 – 1.2%
Height 6’3” ROAE 8.0 – 12.0%
Reach 80”Classified Assets / Equity +
ALLLUnder 30%
Weight 210 Fee Income / Total Income 25% - 40%
Record 19 – 0 Efficiency Ratio 55% - 65%
FINANCIAL MEASUREMENT – WHAT ARE YOUR GOALS?
BOND BANK EQUITY BANK
Year Started Older Newer
Shareholders Legacy First generation
Inside Ownership Low Moderate to High
Loan to Deposit Low High
Last Equity Raise Never, distant past During or after Credit Crisis
Succession Plan Limited or None Yes with recent change
Dividend Yes Maybe
ROAE Under 8% Greater than 8%
ROAA Under 1.0% Greater than 1.0%
Board Composition Older, unitary Younger, diversified
Risk Profile Low Low to Moderate
Valuation Below Book Value Near or slightly above Book Value
28WHAT TYPE OF BANK ARE YOU?
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
$15,000,000
$16,000,000
$17,000,000
$18,000,000
Total Assets ($000s)
Founded as First of
Michigan Bancorp, Inc.
Dave Provost
joins as CEO
Mortgage Banking Dept. started;
FDIC approves business plan;
$12mm capital raise
Completes 2 FDIC-assisted deals;
Completes first unassisted acquisition
$400mm capital raise;
Completes 2 FDIC-assisted deals;
CFO, COO, CCO Hired
Completes First Place Bank
acquisition via 363 Sale in
Bankruptcy Court
Completes Michigan Commerce
acquisition via 363 Sale in
Bankruptcy Court
Divests 13 branches
in WI and NV
Completes First
of Huron Corp.
acquisition
Sale to Chemical
Financial Corp.
Source: SNL Financial
Chemical Financial Corp. pro
forma with Talmer Bancorp, Inc.
29STRATEGIC PLANNING CASE STUDY: TALMER BANCORP, INC.
Higher Stock Price
Stock Valuation
Liquidity
Information/ Transparency
Dividend Policy
30SHAREHOLDER - CONSIDERATIONS
Stock Valuation
TBV / Internal
Valuation
Independent Valuation
Formal Market or Exchange
31STOCK VALUATION
32
Liquidity
STOCK LIQUIDITY
Annual & quarterly reports (PDF)
Management and Board pictures, bios
Links to press releases, SEC filings
SNL Financial link
Branch listing / map
Investor presentations
Information / Transparency
Annual Report
Quarterly Shareholder
Letter
Annual Meeting
Quarterly Call
Web Page
33INFORMATION / TRANSPARENCY
Financial overview (with items just discussed)
What is our market and demographics?
What are our growth plans?
Organic vs. acquisition growth strategy
What is our core deposit or funding strategy
What do we want to be when we grow up?
The Investment Presentation can make or breakwhether someone will buy your stock
34INVESTOR PRESENTATION
Don’t make analysts ask “Where’s Waldo?”
BALANCE SHEET P & L CREDIT
BV/Share Pre, Pre ROAAClassifieds/Equity +
ALLL
TBV/Share Pre, Pre ROAE NPA’s/Assets
Goodwill NIM Reserves/NPA’s
CRE/Capital Efficiency Ratio Cum. NCO/Peak NPA’s
TCE/AssetsFee Income/Total
IncomeTexas Ratio
35FINANCIAL DISCLOSURES – HOT BUTTONS
36
Dividend Policy
Reward Shareholders
Manage Capital Levels
Attract certain investors that
require dividend (i.e.
pension funds)
Return capital from special event
Impacts Value of the
Stock
DIVIDENDS: ARE THEY IMPORTANT?
STRATEGIC PLANNING – SUMMARY AND TRACKING
Andrew C. Christians, CFA
38
39SUMMARY FOCUS TOPICS OF YOUR STRATEGIC PLAN
Buy, Hold, or Sell?
If the Board feels that “Buy” is in the best interests of the shareholders, need to think about:
Who would ideal targets banks be?
o Geography
o Size
o Shareholder base
o Balance sheet composition (loans, deposits, liquidity)
o Credit quality and capital management
How can our bank structure a transaction for each specific target, based on our needs and the target’s needs?
o Cash vs. stock vs. mix
o Pro forma capital position of the resulting bank is critical in this planning –conversations early with all regulatory agencies is strongly advised
o How much can we afford to pay and still enhance our current shareholders’ franchise value?
If the Board feels that “Hold” is in the best interests of the shareholders, need to think about:
Management and employees (succession, security, alignment with shareholders)
Growth opportunities inside of current business lines (key hires, new locations)
Growth opportunities in new business lines
Expense controls, while managing necessary capital expenditures
What are our capital needs in order to achieve our standalone plan?
Create detailed 1-3 year budget with key balance sheet, P&L, and financial ratios that can be tracked
How does our expected return on equity (ROE) compare to the cost of our capital?
How Does Our Bank Achieve Its Best Results?
40SUMMARY FOCUS TOPICS OF YOUR STRATEGIC PLAN
Buy, Hold, or Sell?
If the Board feels that “Sell” is in the best interests of the shareholders, need to think about:
Management and key employee protection
Shareholder needs (liquidity in the form of stock or cash)
Potential merger partners
One-off vs. limited auction vs. full auction
Tax implications
Any regulatory concerns with buyer (credit, capital, management, compliance)?
How Does Our Bank Achieve Its Best Results?
41CAPITAL PLANNING FOR AN ACQUISITION
Capital is a critical component to strategic planning for a prospective acquisition
Key focus of regulatory review and has been even more evident in the past 12-18 months
If no active transaction on the table, should make a list of top 5 target institutions
For each prospective target, should create merger models
Sensitize the inputs (size, valuation, form of consideration) to determine the impact on some key outputs (accretion/dilution, earn back period, and bank capital ratios as a few examples)
At the different valuation levels, how much cash vs. stock can you include in the transaction while maintaining sufficient capital levels?
What are sufficient capital levels?
What is the “right” form of capital?
Common equity – gold star from the regulators, but most “expensive” to your bank
Preferred equity – less expensive than common equity, but still expensive as not tax deductible
Need to consider capital treatment for different forms of preferred equity
Subordinated debt – tax-deductible and popular capital alternative today
Need to consider capital treatment based on size of your institution
Senior debt – cheapest form of capital at the bank, but lender may require BHC stock as collateral
Need to consider expected pro forma capital structure (debt/equity and debt/total capital)
Need to consider cash flow coverage of any mandatory coupon
Planning Tips and Key Considerations
42CAPITAL PLANNING FOR AN ACQUISITION
Overview of Capital Alternatives
Security Type Advantages Disadvantages
Common Stock
(rights offering, public offering, or
private placement)
▲ 100% tier 1 capital credit, without limitation
▲ Needs to be the dominant element in tier 1
▲ Best capital alternative for regulators
▲ Dividends are discretionary – no impairment to
earnings
▲ Additional common equity expands a bank’s
capacity to issue additional hybrids
▼ High risk requires a commensurate return,
making common equity the most expensive form
of capital
▼ New issuance is the most dilutive alternative to
the existing common equity holders
▼ Typically priced at a discount to market
▼ Negative impact on performance ratios
Non-Cumulative Convertible
Preferred
(public offering or private
placement)
▲ Qualifies as 100% tier 1 capital credit
▲ Non-cumulative preferred offerings often
diversify a firm’s capital structure
▲ Cost effective alternative to common equity
offering
▲ Perpetual has no stated maturity – little or no
refinancing risk
▼ Does not satisfy regulator and investor focus on
tangible common equity
▼ Because dividends are not tax deductible for the
issuer and because it represents a junior form of
capital, it is more costly than trust preferred
▼ Investors and capacity are limited
▼ Dilutive to shareholders upon conversion
Subordinated Debt
(public offering or private
placement)
▲ Generally qualifies as 100% tier 2 capital credit
at BHC level; proceeds can be contributed to
bank as tier 1 capital
▲ Tax deductible
▲ Limited dilution, if any
▲ Generally, an inexpensive form of regulatory
capital
▼ Does not satisfy regulator and investor focus on
tangible common equity
▼ Interest expense impairs profitability
▼ More expensive than senior debt
▼ 20% annual tier 2 “haircut”
▼ Not permanent capital, so must have ability to
repay or refinance (5-10 years)
Holding Company Senior Debt
(correspondent bank, public
offering, or private placement)
▲ Qualifies as 100% tier 1 capital at bank level
▲ No dilution to existing shareholders
▲ Generally, an inexpensive form of regulatory
capital
▼ Can be difficult to source w/o ability to
demonstrate adequate uses of capital
▼ First lien and priority in liquidation
▼ Pledge of bank stock required as collateral
43“HOLD” STRATEGIC PLANNING – MONITORING THE PLAN
If the strategic plan calls for your bank to remaining independent, it is critical that the bank is always improving
In an effort to monitor the bank’s progress against its strategic plan, certain financial performance metrics of the bank should be compared against peer groups
A detailed peer group should be created based on specific factors to your bank:
Geography (county, MSA, region, State)
Asset size
Concentrated type of lending
Unique or niche business model
A second peer group based on just geography also can be useful
The next couple of slides offer up some templates for key financial metrics that your bank can be compared against, with focus on:
Profitability
Loan growth
Credit quality
Funding composition
Cost of funding
Noninterest income
Expense management
Capital management
Planning Tips and Key Considerations
STRATEGIC POSITIONING – “HOLD” MONITORING 44
YOUR BANK vs. Peer Group
Notes: 1. All metrics listed, unless otherwise noted,
are for the LTM as of the most recent quarter financial results available.
2. Peer Group includes all regulated depositories in Michigan with total assets between $250 and $750 million.
3. Dollars in thousands4. Source: SNL Financial
YOUR
BANK
Peer
Group Advantage
Profitability: (data as of LTM, except where noted)
Core ROAA 1.43% 1.28% YOUR Bank
ROAA 0.92% 0.90% YOUR Bank
ROACE 7.89% 8.90% Peer
NIM (MRQ) 3.99% 3.69% YOUR Bank
Cost of Deposits (MRQ) 0.27% 0.47% YOUR Bank
Noninterest Income/Total Revenue 23.61% 15.12% YOUR Bank
Noninterest Income/Avg. Assets 1.14% 0.72% YOUR Bank
Noninterest Expense/Avg. assets 3.26% 3.22% Peer
Growth:
Loan growth (MRQ) 12.35% 9.52% YOUR Bank
Loan growth (LTM) 6.34% 10.15% Peer
Asset Quality: (data as of MRQ)
NPAs/Loans 2.03% 3.78% YOUR Bank
Reserves/NPAs 62.18% 47.08% YOUR Bank
Balance Sheet: (data as of MRQ)
Noninterest Bearing Deposits/Total Deposits 5.66% 18.39% Peer
Core Deposits/Total Funding 90.28% 84.73% YOUR Bank
Gross Loans/Core Deposits 95.43% 85.58% YOUR Bank
Assets/FTE $3,266 $3,687 Peer
STRATEGIC POSITIONING – “HOLD” MONITORING 45
YOUR BANK vs. Michigan Banks
Notes: 1. All metrics listed above, unless otherwise
noted, are for the LTM as of the most recent quarter financial results available.
2. Michigan Bank Peer Group is the median of all regulated depositories headquartered in the state of Michigan
3. Dollars in thousands4. Source: SNL Financial
YOUR
BANK
All Michigan
Banks Advantage
Profitability: (data as of LTM, except where noted)
Core ROAA 1.43% 1.03% YOUR Bank
ROAA 0.92% 0.75% YOUR Bank
ROACE 7.89% 7.08% YOUR Bank
NIM (MRQ) 3.99% 3.76% YOUR Bank
Cost of Deposits (MRQ) 0.27% 0.49% YOUR Bank
Noninterest Income/Total Revenue 23.61% 14.85% YOUR Bank
Noninterest Income/Avg. Assets 1.14% 0.64% YOUR Bank
Noninterest Expense/Avg. assets 3.26% 3.22% Peer
Growth:
Loan growth (MRQ) 12.35% 5.24% YOUR Bank
Loan growth (LTM) 6.34% 4.26% YOUR Bank
Asset Quality: (data as of MRQ)
NPAs/Loans 2.03% 4.23% YOUR Bank
Reserves/NPAs 62.18% 36.51% YOUR Bank
Balance Sheet: (data as of MRQ)
Noninterest Bearing Deposits/Total Deposits 5.66% 19.28% Peer
Core Deposits/Total Funding 90.28% 90.84% Peer
Gross Loans/Core Deposits 95.43% 81.59% YOUR Bank
Assets/FTE $3,266 $3,496 Peer
Liquidity Ratio and Loans/Total Funding
20.06% 18.29% 18.57%16.18%
19.17%22.39%
25.00%27.87% 27.91% 27.14% 27.48% 27.56%
83.62% 83.56% 83.88% 85.15%
79.58% 78.29%76.00% 74.73% 73.77% 74.61% 74.70% 75.66%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016
Median Liquidity Ratio Median Loans/Total Funding
Source: SNL Financial; includes all Banks headquartered in Michigan
46BALANCE SHEET MANAGEMENT - TRACKING
Total Revenue and Net Interest Margin $ in 000s
Source: SNL Financial; includes all Banks headquartered in Michigan
* Note: Q3 2016 Total Revenue is annualized YTD Q3 2016 results for all Michigan banks
*
$11,776
$13,059 $13,918
$12,737
$11,319 $11,102 $10,199
$11,034 $10,192 $10,219 $10,439
$11,125
4.17%4.10%
3.95%
3.79% 3.79%
3.93% 3.92%3.86%
3.76% 3.74%3.66% 3.68%
3.20%
3.40%
3.60%
3.80%
4.00%
4.20%
4.40%
4.60%
4.80%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Q3
2016
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Median Total Revenue Median NIM
47REVENUE AND MARGIN - TRACKING
Noninterest Expense/Total Revenue and Noninterest Expense/Total Expenses
Source: SNL Financial; includes all Banks headquartered in Michigan
46.42%42.32% 42.10%
47.08%
56.31% 58.79%
65.48% 63.06%
70.09% 70.95% 70.17%65.88%
61.37%
51.97% 51.18%57.37%
68.47%
76.36%81.95%
84.89%89.73% 90.52%
93.34%90.71%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Q3
2016
Median Noninterest Expense/Total Revenue Median Noninterest Expense/Total Expenses
48EXPENSE CONTROLS - TRACKING
Efficiency Ratio
Source: SNL Financial; includes all Banks headquartered in Michigan
63.75%
65.41%
68.44%
71.09%
73.70%
71.93% 71.58%
70.20%
73.24%73.80%
72.88%
71.20%
60.00%
62.00%
64.00%
66.00%
68.00%
70.00%
72.00%
74.00%
76.00%
78.00%
80.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Q3
2016
Median Efficiency Ratio
49EXPENSE CONTROLS - TRACKING
Return on Avg. Assets and Return on Avg. Common Equity
Source: SNL Financial; includes all Banks headquartered in Michigan
1.04%1.00%
0.81%
0.39%
0.29%
0.42%
0.54%
0.76% 0.79% 0.76%
0.86% 0.84%
10.21%9.37%
7.49%
3.68%3.04%
3.55%
5.72%
7.55% 7.45% 7.13%7.80% 7.85%
0.00%
2.50%
5.00%
7.50%
10.00%
12.50%
15.00%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Q3
2016
RO
AC
E
RO
AA
Median ROAA Median ROACE
50PROFITABILITY - TRACKING
Q&A
DPP – FINANCIAL INSTITUTIONS GROUP 52
John C. Donnelly - Managing DirectorMr. Donnelly is a Managing Director for Donnelly Penman & Partners (DP&P). DP&P is an investment bankingfirm specializing in raising capital and advising on mergers and acquisitions in the banking industry. Mr.Donnelly is also the founder and Managing Member of the Donnelly Penman Financial Services Fund, LP (the“Fund”) which invests in community banks throughout the country. Prior to co-founding DP&P in 2000, Mr.Donnelly was a Managing Director in the investment banking department of Raymond James & Associates, Inc.where he focused on the financial services industries. Mr. Donnelly joined Raymond James in 1999 effective withits acquisition of Roney & Co., a Midwest based investment banking and brokerage firm. Mr. Donnelly joinedRoney in 1993 where he held the positions of Managing Director and head of the Financial Institutions groupand also served on the Executive Committee. From 1983 to 1993, Mr. Donnelly held the positions of Senior VicePresident and Director of Corporate Finance at First of Michigan Corporation (now Oppenheimer). Prior to that,he was employed in various credit and lending positions at both Manufacturer's National Bank (now Comerica,Inc.) and Michigan National Bank (now Bank of America). Mr. Donnelly is a Trustee of the Beaumont HealthSystem and is a former director of Carolina Premier Bank in Charlotte, North Carolina.
Mr. Donnelly graduated from Georgetown University and holds a M.B.A. degree from the University of DetroitMercy. Mr. Donnelly also has Series 7, 24, 27, 55 and 63 licenses with FINRA.
Andrew C. Christians, CFA – Managing DirectorJoining DP&P in 2006, Mr. Christians specializes in mergers and acquisitions (buy side and sell side), businessvaluations, financial advisory, strategic analysis, and raising capital for financial institutions. Mr. Christians hasalso rendered sell-side and valuation services for the automotive, manufacturing, and service industries.Additionally, Mr. Christians has been the Portfolio Manager for the Donnelly Penman Financial Services Fund($28 million private equity fund dedicated to investing in community bank equities across the nation) sinceMarch 2009, in addition to managing accounting, investor relation, and administrative activities. He also sits onthe Advisory Board and Investment Committee for the Fund. Prior to joining DP&P, Mr. Christians was anAnalyst in Stout Risius Ross' Transaction Advisory Group. At Stout Risius Ross, he specialized in performingfinancial opinions and consulting services primarily related to mergers and acquisitions, goodwill impairmentanalyses, and corporate strategic planning. Mr. Christians has earned the right to use the Chartered FinancialAnalyst (CFA) designation and graduated from the University of Michigan's Ross School of Business with aB.B.A. degree with concentrations in Finance and Accounting.
JOHN C. DONNELLY
Managing Director(313) 393-3054
ANDREW C. CHRISTIANS
Managing Director(313) 393-3074
OVERVIEW OF DONNELLY PENMAN & PARTNERS
Donnelly Penman provides a full range of corporate finance and financial advisory services, primarily focusing on the Manufacturing and Financial Institution industries.
Mergers & Acquisitions Capital Raising Financial Advisory
Sell Side/Buy Side Public Offerings Private Offering
Fairness Opinions Valuations General
Identify, analyze and initiate transaction
Advise on deal structure
Assist with negotiations
Strategic alliances/joint venture assistance
Merger of equals
Special Committee assignments
Common Stock
Subordinated Debt
Preferred Stock
Warrants & Rights Offerings
Initial Public Offerings
Secondary Offering
Private Equity Placements
Private Debt Placements
Bank/Lending Institution Debt (Senior and Subordinated)
Merger and Acquisitions
Stock Repurchase Plans
Privatizations
ESOP Programs
Estate Planning
Leveraged Buyouts
Strategic Alternatives
M&A Due Diligence Advisory Services
Recapitalizations
Transaction Options
Family Disputes
One of the largest independent investment banking firms headquartered in the Midwest
Registered broker/dealer with the Financial Industry Regulatory Authority (FINRA)
Manager of Donnelly Penman Financial Services Fund
53