Banc One Picks Software For Acquisition Analysis
LOS ANGELES -- Acquisition-minded Banc One Corp. has licensed software from Treasury Services Corp. that is designed to ease analysis of bank or portfolio purchases.
The software will be be used primarily for due diligence in acquisitions of portfolios and securitization of assets.
But the software can also be used for acquisitions of entire banks. Banc One, a super-regional based in Columbus, Ohio, has announced 14 acquisitions this year.
Making Data Accessible
"It is very difficult to know what is in the portfolios when a bank is buying," said John C. Dorman, president of Treasury Services, which is based in Santa Monica, Calif.
"This software makes data very accessible to managers. It streamlines a very cumbersome process." Mr. Dorman said.
After downloading raw data from a mainframe, analysis and due diligence can be done on a "large, fast" personal computer, according to Mr. Dorman. Even laptops can be used.
"You can get information for all the loans and deposits for the acquisition of a $5 billion bank on a laptop," Mr. Dorman said.
The software allows data to be analyzed loan by loan. For example, bad loans can be tracked by branch or type.
Attempting detailed due diligence before an acquisition can get so many people involved that it is difficult to keep the deal secret.
Mr. Dorman said it takes one technician two days to do any custom programming necessary and to download data to a PC.
The limited number of people involved can help preserve secrecy.
Mr. Dorman would not disclose the software's price but said his company's typical contract costs from $150,000 to more than $500,000.
Banc One is the 35th banking company to use the software but the first that is specifically interested in its applications to acquisitions and securitization, according to Mr. Dorman.
The software is dubbed "TSER," for Treasury Services Evaluation and Reporting. Banc One will use two modules -- one called Portfolio Manager and the other Treasury Manager.
Banc One will also use the software package to enhance its asset-liability management.
Treasury Services, founded in 1983 as a consulting firm, has slowly evolved into primarily a software and technology services company.