Question

. If you were the CEO of Agricole, would you pursue an acquisition target in the near future? Why or why not?

Answer 1

This question is difficult to answer specifically without extensive knowledge of the European banking industry. But, in general, Deutsche Bank would look for another bank that is a strategic fit and/or which has complementary assets. The prospect for economies of scale should be present. The ability to learn new capabilities would be ideal. The purchase price would be reasonable in light of future cash flows and in light of the debt required to make the purchase. The government of the country of the bank to be acquired would have to be positive or neutral about the purchase, and there would need to be little social backlash against an acquisition.