Companies throughout Maryland often find that the fastest way to grow and obtain market share is through expansion. This expansion can take place by either creating new locations or through buying a business that currently exists in the market. New locations generally mean additional customers and greater profits for the company. Buying a business can often add these additional customers and profits in the shortest amount of time.
Recently, FNB Corp. has been in an expansion phase. This banking company recently announced its agreement to purchase OBA Bank. OBA Bank currently consists of six branches with headquarters in Germantown, Maryland. This all-stock acquisition is expected to add approximately $390 million to FNB's portfolio.
Over the past few years, FNB has grown from being the seventh largest to the third largest bank within its home region. Bank officials have credited the company's success to their successful acquisition of existing banks within their market area. Expansion through buying existing businesses has proven to be a successful venture for this corporation.
The expansion and growth of a business can be an exciting yet nerve-racking proposition. There are many issues to be considered. In deciding to buy a business that already exists, the potential purchaser will typically want to review their assets, liabilities, customer base and growth potential along with many other items. Many times, assistance might be required to carefully review documents and create the necessary agreements for the transaction to proceed.
Businesses throughout Maryland often look for new ways to grow their business. Expansion is one way this can be done. By buying a business that has already built a client base, the company can often achieve its growth goal in an efficient and timely manner.
Source: post-gazette.com, "FNB looking for more acquisitions, CEO says", Patricia Sabatini, April 24, 2014