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The investment banking firm Sterne Agee & Leach recently studied 16 bank mergers that involve sellers with market capitalizations of $100 million to $5 billion. The sellers share a number of characteristics in common. Here are seven important ones.
Heavy Insider Ownership
Insiders typically officers and directors own more than 20% of the common stock at nearly 70% of the sellers. The right premium can often persuade insiders to take their chips off the table.