Bank purchase engagement with Healy Consultants in 2023
Since 2003, Healy Consultants Group helps multi-national Clients’ purchase licensed banks. The engagement usually evolves as described below:
Identification of Banks
- Before Healy Consultants Group proceeds with the engagement, our Client settles a retainer fee of US$5,000 for research of up to 3 available banking institutions options worldwide, according to the preferences and requirements stated during the engagement planning phase;
- In addition to our standard due diligence documents, Healy Consultants Group will also require, our Clients to supply, a i) letter of intent to purchase a bank and ii) proof of funds documents such as: bank statement, security statement, or custody statement;
- Healy Consultants Group conducts research on banks available for purchase for up to 6 weeks. We will send weekly updates to our Clients detailing information on banks currently available for sale gathered through our global network of partners, brokers and banks;
- The deliverable our Clients should expect is a detailed comparison table of available options with the following information i) price of each bank for sale, ii) current country of registration, iii) their regulatory license and iv) email evidence they are available or connect you to the bank’s appointed broker;
- If our Client’s requires Healy Consultants Group to pursue the research for up to 3 additional banks, a second retainer fee of US$5,000 will be applicable;
- At the end of the 6 weeks, we aim to provide our Client with a final comparison table to review this deliverable and decide whether the proposed options meet their requirements.
Regulatory Approvals & Pre-Transaction Support
- After our Client select their preferred bank to purchase, Healy Consultants Group prepares a detailed engagement strategy document detailing i) bank purchase procedures including bank licensing and SWIFT registration ii) tax implications iii) regulations and compliance (banking, shareholders, directors) iv) complete project plan outlining expected timeframes v) breakdown of total bank set up fees (Healy Consultants, lawyers, government, etc.) vi) recruitment of staff and vii) lease of physical office, amongst other important aspects;
- Our Client will be required to settle a second retainer fee of US$20,000 before Healy Consultants Group prepares this engagement strategy document;
- Healy Consultants Group facilitates a detailed call between our Client and the Bank representatives and assigned broker. Over the call, Healy Consultants Group transparently discusses key concerns associated with the bank purchase including valuation, structuring considerations, synergies, integration, and red flags, if any;
- Thereafter, if required Healy Consultants Group can assist our Client in the preparation of a non-binding agreement and detailed legal, financial, operational due diligence of our Client’s preferred bank. Healy Consultants Group will deploy our panel of expert lawyers specializing in bank purchase engagements to draft the documents;
- If required, Healy Consultants Group assists our Client to secure an Investment approval by the local Central Bank or financial supervisory authority. Additional fees will be levied for this service. The regulatory and compliance requirements for obtaining the Investment approval will vary depending on the jurisdiction of the selected bank to be purchased.
Deal Advisory Support
- Healy Consultants Group i) re-negotiates the bank asking price with the sell side broker/ bank management contingent to the results of the due-diligence process and ii) engages independent lawyers, accountants and auditors to prepare the binding offer;
- Healy Consultants Group then assists our Client in the legal transfer of the title including changing the shareholder and directors of the bank to our Clients’ preferred corporate structure, after final approval by the local Central Bank;
- Our Client deposits the paid-up share capital, according to local Central Bank’s capitalization requirements;
- If required, Healy Consultants Group´s post bank purchase services can include
- application for SWIFT membership,
- negotiation with international banks to secure correspondent accounts,
- application to issue VISA/MASTER cards and
- internet banking software implementation.
- Following the receipt of all necessary approvals and documents, Healy Consultants Group supplies a full bank kit to our Client, including original updated corporate documents, local Central Bank correspondences, and lastly a Client feedback survey to make sure that all the Client expectations were met during the entire engagement period.