Following the death of the founder of this private bank based in the Caribbean, there were many private equity and legal entities chasing the widow and family to take over the business. The son (who was active in the business) wanted to divest to a strategic buyer who understood the value of licenses the bank owned in its jurisdiction, and could add value to the overall business and expand it internationally. The bank had $10.8 billion in assets under administration and $15.8 billion in assets under management. Leveraging our industry relationships and global network, STS reached out to international strategic investors and brought competing buyers from North America and Europe to the table.
STS researched the strategic imperatives of multiple interested parties and ran a soft auction, which drove an industry leading multiple and was well beyond the book value and the client’s expectations. Noteworthy is the fact that at the end of the process, one of the two final bidders offered an even higher multiple offer to the family. However, as the family felt a strategic connection with the chosen buyer, they made the decision to close with them.
The transaction expanded the buyer’s financial capabilities in the region, extending its product and service offerings to its global base of clients; and allowed the family to set up a charitable foundation.