Selling a business can sometimes be good for Maryland business

Many large holding companies throughout Maryland diversify their business and acquire a variety of businesses within their portfolio. By operating in this manner, they are able to engage in a variety of endeavors and add to their overall bottom line. Sometimes, however, a part of the portfolio does not meet expectations and can cause problems within the overall company. At other times, the holding company can simply become overextended and find that they would be better served by selling a business to continue to operate in a responsible manner.

Several months ago, First Mariner Bancorp found itself facing Chapter 11 bankruptcy and began to investigate ways in which it could pay off its outstanding debts. Although one of its businesses, First Mariner Bank, was not bankrupt, the holding company decided that selling this particular business would be in its best interest. An auction was held, and several companies vied for the opportunity to purchase the bank.

After the dust settled, and some litigation over competing bids, RKJS was established as the bidder who won the auction. State banking and FDIC approval has now been obtained. This makes way for the $18.7 million transaction to proceed.

In this case, selling a business will allow one Maryland business to emerge from bankruptcy and continue operation. Although the majority of business sales and purchases are not of this size, they all require extensive negotiations, paperwork and analysis to ensure that everything is handled appropriately. Transactions of this nature often require assistance in navigating the various legal and regulatory requirements for success.

Source: Baltimore Business Journal, "First Mariner Bank sale gets approval from FDIC, Maryland regulators", Sarah Gantz, June 9, 2014

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