Pub. 1 2010 Issue 4

winter 2010 11 relief that at least it got a better price than last year. If a good bank can buy a good bank at these multiples, in most cases, it makes perfect sense from a financial perspective. But, this may not always be the case, as discussed below. If a board does decide to sell or to buy, due diligence in analyz- ing the situation is extremely important. The key to remember is that the investment banker has a conflict of interest. If the deal doesn’t get done, they don’t get paid! Thus, the invest- ment banker is incentivized to close the deal even if it is ill-advised. Q Bearing Gifts — continued on page 12