Mayhall Fondren Blaize

Business law attorneys facilitate acquisitions and mergers

Financial asset management companies are often acquired or merged with other similar entities in Louisiana and elsewhere. As in all acquisitions and mergers, business law attorneys will play a major role in facilitating the successful completion of the transaction. Where regulatory approval is required, the attorneys will be directly and indirectly involved in that process.

Whitney Bank has recently announced the acquisition of a financial management concern to complement its business. Whitney is a subsidiary of Hancock Holding Company. Whitney will purchase the trust and financial management business owned by Capital One Financial Corporation. The price paid for the business has not yet been revealed.

The segment of Capital One's business that is being purchased is located primarily in Louisiana and East Texas. The deal is slated for completion in the second quarter of 2018. Regulatory approval will have to occur prior to the completion date.

The acquisition will place Whitney in the top 50 trust firms nationally in terms of its revenue, which is expected to be in the range of $70 to $75 million per year. According to the CEO of Whitney, the acquisition will fit in strategically with its existing wealth management portfolio. Whitney states that it currently follows a strategy of acquiring in-market, low-risk businesses to complement its overall approach.

According to Whitney, it will have a leading position in Louisiana and the Gulf area with respect to wealth management resources and financial advisors for individuals and institutions. Some commercial acquisitions are focused on diversifying a company's activities as part of a long-term strategy for the future. This transaction is more conservative and relates to strengthening the purchaser's existing core of financial management services. Business law attorneys will have an integral role in facilitating regulatory approval and completing the transaction according to legal requirements.

Source:, "Hancock Holding Buys Capital One's Asset Management Business", Dec. 19, 2017

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