Summary

Other Scenarios:

Buyer: Bank of America Corporation (BAC) Last Price: 13.36 Market Cap.: 67.03B
Target: Wachovia Corporation (WB) Last Price: 5.45 Market Cap.: 11.78B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Business and Public Services   621
Business Services   212
Professional Services   108
Electronic Transaction Processing and Clearinghouse Activities   17
Finance 1,234
Banking 641
Domestic Banks 605
Commercial Banks 409
International Banks   35
Americas   18
Asia/Pacific   10
EMEA (Europe, Middle East, Africa)   6
Insurance   164
Life/Health   33
Domestic   23
Property/Casualty   90
Domestic   80
Reinsurance   26
Property/Casualty   22
Investment 131
Asset Management and Financial Advisory 76
Institutional/High-Net Advisory 8
Instruments 52
Retail Advisory   1
Investment Banking/Corporate Finance 22
United States 15
Securities Sales and Trading 32
Brokerage Services 21
Research 0
Trading 4
Specialty Finance 63
Commercial 18
Commercial Loans   2
Leasing 15
Consumer Loans 25
Automobile Financing   8
Credit Cards   5
Personal   0
Mortgage Banking and Real Estate Financing 12
Financial Services 11
Valuation and Appraisal Services   0
Technology   930
Software   267
Industry-Specific   86
Finance   19
Healthcare/Pharma   25

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 23)
  • LaSalle Bank, N.A.
  • Bank of America, N.A.
Target (Total: 15)
  • Wachovia Bank
  • Wachovia Mortgage, FSB
Buyer
  • BA Merchant Services
  • Bank of America, N.A.
  • BankBoston, N.A.
  • Bank of America (Asia) Ltd.
Target
  • OFFITBANK
  • Evergreen Investment Management Company, LLC
  • Wachovia Securities, LLC
  • J.L. Kaplan Associates, LLC

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 51)
  • Intersections Inc. (INTX)
  • Tree.com Inc (TREE)
  • Fannie Mae (FNM)
  • Conversion Services International Inc. (CVNS)
Target (Total: 27)
  • Corporate Office Properties Trust (OFC)
  • Highwoods Properties, Inc. (HIW)
  • Oracle Corporation (ORCL)
  • Infosys Technologies Limited (ADR) (INFY)
Buyer (Total: 1)
  • Global Cash Access Holdings, Inc. (GCA)
Target (Total: 3)
  • Ambac Financial Group, Inc. (ABK)
  • Sanders Morris Harris Group (SMHG)
  • National Holdings Corporation (NHLD)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 247,024 117,227
Revenue Per Employee n/a n/a
Total Revenue 22,196.0 9,400.0
Total Expenses 17,004.0 11,038.0
Other Revenue n/a n/a
Cost of Revenue n/a n/a
SG&A Expense n/a n/a
Research & Development n/a n/a
Other Operating Expense n/a n/a
Operating Income 5,192.0 -1,638.0
Unusual Income n/a n/a
LT Debt to Capital 63.83 78.57
Fwd P/E 10.17 -1.52
Fwd P/Rev 0.86 0.35
Book Value 136,888.0 40,178.0
Curr Portion of LTD/Cap Lease 0.0 0.0

Individual Company Summary

Focused

Buyer

Focused (): Finance > Banking > Domestic Banks > Commercial Banks

Target

Focused (): Finance > Banking > Domestic Banks > Commercial Banks > South > South Atlantic

Business Description

Buyer

Bank of America Corporation is a bank holding company. Through its banking subsidiaries (the Banks) and various non-banking subsidiaries throughout the United States and in selected international markets, Bank of America provides a diversified range of banking and non-banking financial services and products through three business segments: Global Consumer and Small Business Banking, Global Corporate and Investment Banking, and Global Wealth and Investment Management. The Company operates in 32 states, the District of Columbia and 30 foreign countries. In the United States, it serves 59 million consumer and small business relationships with 6,100 retail banking offices, 18,500 automated teller machines (ATMs) and 24 million active online users. It offers services in 13 states. In October 2007, it acquired ABN AMRO North America Holding Company. In July 2007, it acquired U.S. Trust Corporation. In July 2008, Bank of America acquired Countrywide Financial Corp.

Target

Wachovia Corporation (Wachovia) is a financial holding company and a bank holding company. It provides commercial and retail banking, and trust services through full-service banking offices in Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Kansas, Maryland, Mississippi, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and Washington, D.C. It also provides various other financial services, including mortgage banking, investment banking, investment advisory, home equity lending, asset-based lending, leasing, insurance, international and securities brokerage services, through other subsidiaries. The Company?s retail securities brokerage business is conducted through Wachovia Securities, LLC, and operates in 49 states. In October 2007, Wachovia completed the acquisition of A.G. Edwards, Inc. In February 2007, the Company acquired a majority interest in European Credit Management Ltd.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 100 100
Operating Margin % 22.63 5.47
Quick Ratio 0 0
Current Ratio 0.03 0.05
Coverage Ratio n/a n/a
Total Assets 1,831,177.0 764,378.0
Return on Equity % 3.77 -66.16
Return on Assets % 0.33 -4.33
Cash+ ST Inv. Per Share n/a n/a
Total Debt 655,717.0 251,217.0
Total Debt to Equity % 407.18 502.4
Total Debt to Tangible Equity % 1,338.61 843.24
Debt to Asset % 35.81 32.87

Product Summary

Sector Buyer Target
Business and Public Services  
Business Services  
Professional Services
Includes accounting, advertising, consulting, legal, and printing services.
  
Finance
Banking
Domestic Banks
The Domestic banking sector includes banks operating in the United States.
International Banks
The International subsector includes large US and non-US banks operating outside the United States. International banks compete in the global banking market principally by offering: global trade and commodity services, corporate lending, industry financing, loan syndication, asset securitization, and diverse investment banking services. They may also conduct retail operations through a branch network.
  
Insurance  
Life/Health
The Life/Health subsector includes life insurance, health insurance, and annuities. Lite insurance guarantees payment to a beneficiary, often when an insured person ceases to generate income, typically at death or retirement. Health insurance protects against financial loss resulting from medical bills, and/or the financial consequences of poor health. Health insurance policies in this area are typically supplemental policies providing benefits beyond those included in a managed care plan (Healthcare hierarchy).
  
Property/Casualty
The Property/Casualty subsector is comprised of insurance products and services that provide coverage for financial loss and legal liability arising from various types of property and casualty risks.
  
Reinsurance
Reinsurance is an arrangement in which a reinsurance company agrees to indemnify an insurance company (the ceding company) for all or a portion of the insurance risks underwritten by the ceding company under one or more insurance policies.
  
Investment
Asset Management and Financial Advisory
The Asset Management and Financial Advisory branch profiles services and companies involved in directly managing personal and institutional portfolios and investment instruments, as well as advisory services like retirement and financial planning, asset allocation, and risk assessment. Banks are generally not attached to the Asset Management and Financial Advisory branch unless their asset management or financial advisory subsidiaries clearly operate with a significant level of independence from the company's core banking operations.
Investment Banking/Corporate Finance
The Investment Banking subsector includes products and services provided by financial institutions that act as underwriters or agents for corporations and municipalities issuing securities. Investment bankers may also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors.
Securities Sales and Trading
The Investment sector encompasses financial products and services offered by financial institutions on behalf of clients. Services included asset management and financial advisory, investment banking and corporate finance, and securities sales and trading.
Specialty Finance
Commercial
The Commercial subsector is comprised of independent finance companies, or financing subsidiaries of major industrial corporations. These lenders offer financial products and services to businesses that include small ticket and large ticket equipment leasing, commercial loans, and real estate loans.
Consumer Loans
Consumer loans are made for the purpose of financing the purchase of consumer goods, home improvements, and other personal needs, and are generally secured by the personal property being purchased.
Mortgage Banking and Real Estate Financing
Real Estate encompasses residential and commercial financial services, loan servicing, and valuation and appraisal services.
Technology  
Software  
Industry-Specific
Software that has functionality specific to a vertical industry.
  

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
Business and Public Services  
Business Services  
Professional Services  
Electronic Transaction Processing and Clearinghouse Activities  
Electronic Payment Processing
Includes companies engaged in the electronic payment transaction processing activities such as credit, debit, gift and loyalty card and other payment processing services, along with related information services.

Buyer Products:

  • BA Merchant Services
  
Finance
Banking
Domestic Banks
Commercial Banks
Midwest
East North Central
Illinois
Commercial banks that conduct their operations in the state of Illinois.

Buyer Products:

  • LaSalle Bank, N.A.
  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
Indiana
Commercial banks that conduct their operations in the state of Indiana.

Buyer Products:

  • LaSalle Bank, N.A.
  
Michigan
Commercial banks that conduct their operations in the state of Michigan.

Buyer Products:

  • LaSalle Bank, N.A.
  
West North Central
Iowa
Commercial banks that conduct their operations in the state of Iowa.

Buyer Products:

  • Bank of America, N.A.
  
Kansas
Commercial banks that conduct their operations in the state of Kansas.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
Missouri
Commercial banks that conduct their operations in the state of Missouri.

Buyer Products:

  • Bank of America, N.A.
  
Northeast
Middle Atlantic
Delaware
Commercial banks that conduct their operations in the state of Delaware.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
District of Columbia
Commercial banks that conduct their operations in the District of Columbia.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
Maryland
Commercial banks that conduct their operations in the state of Maryland.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
New Jersey
Commercial banks that conduct their operations in the state of New Jersey.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Mortgage, FSB
  • Wachovia Bank
New York
Commercial banks that conduct their operations in the state of New York.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
Pennsylvania
Commercial banks that conduct their operations in the commonwealth of Pennsylvania.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
New England
Connecticut
Commercial banks that conduct their operations in the state of Connecticut.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
Maine
Commercial banks that conduct their operations in the state of Maine.

Buyer Products:

  • Bank of America, N.A.
  
Massachusetts
Commercial banks that conduct their operations in the commonwealth of Massachusetts.

Buyer Products:

  • Bank of America, N.A.
  
New Hampshire
Commercial banks that conduct their operations in the state of New Hampshire.

Buyer Products:

  • Bank of America, N.A.
  
Rhode Island
Commercial banks that conduct their operations in the state of Rhode Island.

Buyer Products:

  • Bank of America, N.A.
  
Vermont
Commercial banks that conduct their operations in the state of Vermont.

Buyer Products:

  • Bank of America, N.A.
  
South
East South Central
Alabama
Commercial banks that conduct their operations in the state of Alabama.

Target Products:

  • Wachovia Bank
  
Mississippi
Commercial banks that conduct their operations in the state of Mississippi.

Target Products:

  • Wachovia Bank
  
Tennessee
Commercial banks that conduct their operations in the state of Tennessee.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
South Atlantic
Florida
Commercial banks that conduct their operations in the state of Florida.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
  • Wachovia Mortgage, FSB
Georgia
Commercial banks that conduct their operations in the state of Georgia.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
North Carolina
Commercial banks that conduct their operations in the state of North Carolina.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
South Carolina
Commercial banks that conduct their operations in the state of South Carolina.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
Virginia
Commercial banks that conduct their operations in the commonwealth of Virginia.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
West South Central
Arkansas
Commercial banks that conduct their operations in the state of Arkansas.

Buyer Products:

  • Bank of America, N.A.
  
Oklahoma
Commercial banks that conduct their operations in the state of Oklahoma.

Buyer Products:

  • Bank of America, N.A.
  
Texas
Commercial banks that conduct their operations in the state of Texas.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
  • Wachovia Mortgage, FSB
West
Mountain
Arizona
Commercial banks that conduct their operations in the state of Arizona.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
Colorado
Commercial banks that conduct their operations in the state of Colorado.

Target Products:

  • Wachovia Bank
  
Idaho
Commercial banks that conduct their operations in the state of Idaho.

Buyer Products:

  • Bank of America, N.A.
  
Nevada
Commercial banks that conduct their operations in the state of Nevada.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
New Mexico
Commercial banks that conduct their operations in the state of New Mexico.

Buyer Products:

  • Bank of America, N.A.
  
Pacific
California
Commercial banks that conduct their operations in the state of California.

Buyer Products:

  • Bank of America, N.A.

Target Products:

  • Wachovia Bank
Oregon
Commercial banks that conduct their operations in the state of Oregon.

Buyer Products:

  • Bank of America, N.A.
  
Washington
Commercial banks that conduct their operations in the state of Washington.

Buyer Products:

  • Bank of America, N.A.
  
International Banks  
Americas  
Caribbean  
Corporate
International institutions that conduct corporate financial operations in the Caribbean. Corporate banking operations are primarily targeted at corporations, government entities, and other financial institutions.

Buyer Products:

  • Bank of America, N.A.
  
Latin America  
Corporate
International banks that conduct corporate banking operations in Latin America. Corporate banking operations are primarily targeted at corporations, government entities, and other financial institutions.

Buyer Products:

  • BankBoston, N.A.
  
Retail
International banks that conduct retail banking operations in Latin America. Retail banking operations provide financial services directly to the public through a network of bank branches.

Buyer Products:

  • BankBoston, N.A.
  
Asia/Pacific  
Other Asia/Pacific  
Corporate
International institutions that conduct corporate financial operations in Asia/Pacific. Corporate banking operations are primarily targeted at corporations, government entities, and other financial institutions.

Buyer Products:

  • Bank of America (Asia) Ltd.
  • Bank of America (Macau)
  
EMEA (Europe, Middle East, Africa)  
Europe  
Corporate
International banks that conduct corporate banking operations in Europe. Corporate banking operations are primarily targeted at corporations, government entities, and other financial institutions.

Buyer Products:

  • Bank of America, N.A.
  
Insurance  
Life/Health  
Domestic  
Annuities
A contract sold by life insurance companies or investment professional that guarantees that a periodic payment to a contract's beneficiary commence at a specified or contingent date and continues throughout a fixed period or for the duration of a designated life or lives. There are a number of different types of annuites: fixed rate, flexible premium, variable, immediate, deferred, equity-linked index annuities, and others.

Buyer Products:

  • Balboa Life and Casualty Group
  
Life  
Life Insurance
Life insurance typically purchased by an individual. Policies are offered in different forms, providing different payment and benefit options. Typical policies inlcude traditional whole life and various forms of term life and non-traditional life insurance. Policies are generally targeted at individuals residing in the United States.

Buyer Products:

  • Balboa Life and Casualty Group
  
Supplemental Health  
Accidental Death/Dismemberment
A supplementary benefit rider or endorsement that provides to the insured a sum of money in addition to the basic death benefit of a life insurance policy. This additional amount is payable only if the insured dies or loses any two limbs or the sight of both eyes as the result of an accident.

Buyer Products:

  • Balboa Life and Casualty Group
  
Individual Disability
Disability income insurance provided to individuals is designed to compensate insureds for a portion of the income they lose because of a disabling injury or illness. The coverage is inclusive of short-term and long-term disability periods.

Buyer Products:

  • Balboa Life and Casualty Group
  
Medicare Supplemental
Insurance that is specifically designed to supplement Medicare's benefits, and all standard Medigap plans, regulated by federal and state law to provide uniform, specific benefits across the United States.

Buyer Products:

  • Balboa Life and Casualty Group
  
Property/Casualty  
Domestic  
Personal  
Auto  
Standard
Auto insurance for the class of motorists that are deemed to be of normal risk due to good driving records.

Buyer Products:

  • Balboa Life and Casualty Group
  
Excess/Umbrella Liability
An excess/umbrella policy broadens the personal liability coverage provided in an insured person's homeowners and personal auto policies. It also provides liability coverage over many types of exposures not covered by the standard home and personal auto policies.

Buyer Products:

  • Balboa Life and Casualty Group
  
Homeowners/Renters
Insurance coverage for liability and damage that is related to one's personal dwelling, mobile home, personal property, flood and earthquake coverage. Renters' insurance coverage is also included in this category.

Buyer Products:

  • Balboa Life and Casualty Group
  
Reinsurance  
Property/Casualty  
Mortgage Guaranty
Reinsurance to lending institutions that provide coverage in the event that the property owner defaults on mortgage payments.

Buyer Products:

  • Balboa Reinsurance Company
  
Investment
Asset Management and Financial Advisory
Institutional/High-Net Advisory
Hierarchy level includes financial advisory and/or asset management services for institutional clients, as well as personalized wealth management and financial advisory services targeted exclusively at high net worth individuals.

Buyer Products:

  • Columbia Management Group, Inc.

Target Products:

  • OFFITBANK
  • Evergreen Investment Management Company, LLC
  • Wachovia Securities, LLC
  • J.L. Kaplan Associates, LLC
  • European Credit Management Ltd. (ECM)
Instruments
Alternative
Venture Capital
A source of financing for 'start-up' or early-stage companies embarking on new or turnaround ventures that requires significant investment risk while simultaneously offering the potential for above average future profits. Venture capital funds are typically offered to institutional and high net worth investors. Venture capital fund companies typically offer other types of investment instruments and asset management services. Most "pure-play" venture capital firms are set up as private partnerships, although companies placed at the "Business Development Company" are fairly similar.

Buyer Products:

  • Banc of America Equity Partners

Target Products:

  • Wachovia Securities, LLC
Funds
Equity Funds
Companies placed at this level develop, manage, market and support equity mutual funds. Mutual Funds are funds invested in domestic and international equities. Blended funds consisting of both equity and debt components are also included. Mutual funds generally have clearly stated investment objectives, including benchmark indexing, a growth or value bias, or an industry focus.

Buyer Products:

  • Columbia Funds

Target Products:

  • Atlas Funds
  • Evergreen Funds
Fixed Income
Companies placed at this level develop, manage, market and support fixed income funds. Fixed income funds are funds invested in short-, intermediate-, and long-term government and/or corporate bonds and other debt instruments. Funds invested solely in very short-term, high-quality issues are classified under Money Market Funds.

Buyer Products:

  • Columbia Funds

Target Products:

  • Evergreen Funds
Money Market
Companies placed at this level develop, manage, market and support money market funds. Money market funds are funds invested in high-quality, short-term investments such as T-bills, high-grade commercial paper from various corporations, and CDs from the major money center banks.

Target Products:

  • Evergreen Money Market Funds
  
Retail Advisory
Retail Advisory services includes a range of wealth management, retirement planning, trust, and financial advisory services targeted primarily at individuals and families. Companies and service offerings placed at this level may include some high net worth clients, but the services are generally accessible to investors with more moderate levels of wealth and income.

Target Products:

  • Wachovia Securities, LLC
  
Investment Banking/Corporate Finance
United States
Investment banking and corporate finance services offered in the United States.

Buyer Products:

  • Banc of America Securities

Target Products:

  • Wachovia Capital Markets, LLC
  • Wachovia Securities, LLC
Securities Sales and Trading
Brokerage Services
Institutional Brokerage Services
High volume brokerage and related support services targeted primarily at investment professionals and institutions.

Buyer Products:

  • Banc of America Securities
  
Retail Brokerage Services
Brokerage services targeted primarily at retail and active traders. Online brokerages are inlcuded. Also includes brokerage and other support services offered to registered investment advisors (RIAs).

Target Products:

  • Wachovia Securities, LLC
  
Research
Economic Research
Services provided by investment firms that involve the gathering of statistical data and study of general trends in the economy.

Target Products:

  • Wachovia Securities, LLC
  
Securities Research
Services provided by investment firms that involve the analysis of particular securities, commodities and industries.

Buyer Products:

  • Banc of America Securities

Target Products:

  • Wachovia Securities, LLC
Trading
Commodities and Derivatives
Includes trading commodities and derivaties (exluding foreign exchange products) with company or customer funds with a primary goal of generating excess profit. Also includes advanced commodities and derivatives brokerage capabilities.

Target Products:

  • Wachovia Securities, LLC
  
Equity and Fixed-Income
Includes trading equities and fixed-income securities with company or customer funds with a primary goal of generating excess profit.

Target Products:

  • Wachovia Securities, LLC
  
Specialists
Specialists are members of the exchange to which they apply in order to be assigned stocks to handle. Their functions are to serve as brokers to match buy and sell orders and to handle special limit orders placed with member brokers. Specialists also act as dealers to maintain a fair and orderly market by providing liquidity when the normal flow of orders is not adequate.

Buyer Products:

  • Banc of America Specialist
  
Specialty Finance
Commercial
Commercial Loans  
Lines of Credit/Revolving Credit
An informal loan arrangement between a bank and a customer allowing the customer to borrow up to a prespecified amount.

Buyer Products:

  • Countrywide Warehouse Lending
  
Leasing
Aircraft
Includes leasing and related financing options of new and used commercial aircraft and aircraft engines.

Buyer Products:

  • Banc of America Leasing
  
Commercial Vehicles/Auto
Includes leases offered for commercial vehicles or automobiles.

Buyer Products:

  • Banc of America Leasing
  
General Equipment
Leases for general equipment.

Buyer Products:

  • Banc of America Leasing
  
Industrial Equipment
Leases for types of industrial equipment including manufacturing equipment, material-handling machinery, food-processing systems, mining, woodworking and construction equipment, machine tools, printing presses and packaging machinery.

Buyer Products:

  • Banc of America Leasing
  
Medical Equipment
Includes leases for valuable and specialized healthcare equipment including Magnetic Resonance Imaging systems (MRIs), Computerized Tomography scanners (CT Scanners), Ultrasound equipment, Radiation Therapy equipment and Gamma Knives. Also Includes leases for all types of specialized healthcare equipment used by dental and physicians' groups, including lab equipment, examination tables and diagnostic equipment.

Buyer Products:

  • Banc of America Leasing
  
Office Equipment
Includes leases offered for office equipment excluding technology equipment.

Buyer Products:

  • Banc of America Leasing
  
Rail
Leases for types of transportation equipment including covered hopper cars, tank cars, box cars, pressure differential cars, coal cars. Also includes specialty railcars for a broad range of industries, including agriculture, forest products, utilities, petrochemicals/chemicals, auto, steel and consumer goods.

Target Products:

  • First Union Rail
  
Technology Equipment
Covers leases for high-value, high-technology equipment such as communications technology, industrial technology, information technology and office automation equipment.

Buyer Products:

  • Banc of America Leasing
  
Consumer Loans
Automobile Financing
A loan offered to consumers in order to finance the purchase of new and used automobiles and recreational vehicles. The loan is secured by a lien on the automobile.

Target Products:

  • Wachovia Dealer Services
  • WFS Financial, Inc.
  
Credit Cards
Unsecured lines of credit accessible through the use of a card. Consumer Credit Cards are issued by lenders for consumer use, and give cardholders the right to charge purchases and pay for them later.

Buyer Products:

  • MBNA Corporation
  
Personal
A loan offered to consumers for general purposes, including debt consolidation, education, and other personal uses. Loan repayment is on an installment basis. The personal loans are typically made on an unsecured basis.

Buyer Products:

  • Countrywide Bank
  
Mortgage Banking and Real Estate Financing
Financial Services
Loan Servicing
Loan servicing includes the collecting of principal and interest and remitting the same to the holders of the mortgage loans or mortgage-backed securities to which such mortgage loan relates. The service may include holding escrow funds for the payment of real estate taxes and insurance premiums, contacting delinquent borrowers, supervising foreclosures in the event of unremedied defaults, and generally administering the loans. Sector may also include advisory services offered to mortgage loan issuers and/or investors.

Buyer Products:

  • Countrywide Home Loans, Inc.
  • Global Home Loans, Ltd.
  • LandSafe, Inc.
  
Residential
Home Equity
A loan or a line of credit that allows a homeowner to use the equity in the property. When a loan is made, the lender places a lien against the house. In the case of default, the First Mortgage has a priority of claim over the lien that secures a Home Equity Loan.

Buyer Products:

  • Countrywide Home Loans, Inc.
  
Mortgage Origination
Residential Mortgage Origination is the process of underwriting, closing and funding mortgage loans in-house. The originator obtains a pricing premium compared to wholesale mortgage pricing, because they have the financial backing to accept the risk associated with non-performing loans. Non-REIT companies engaged in investing in residential mortgage securities are also included.

Buyer Products:

  • Countrywide Home Loans, Inc.

Target Products:

  • American Mortgage Network
Real Estate Loans
Real estate loans consist of loans secured by residential real property and loans for the construction of residential property.

Buyer Products:

  • Countrywide Home Loans, Inc.
  
Valuation and Appraisal Services
Valuation is the service of determining the value of an asset. An appraisal is a professional opinion, usually written, of the market value of a property, such as a home, business, or other asset whose market price is not easily determined. Usually required when a property is sold, taxed, insured, or financed.

Buyer Products:

  • UKValuation Limited
  • LandSafe, Inc.
  
Technology  
Software  
Industry-Specific  
Finance  
Trading Software
Software designed to facilitate securities trading in capital markets.

Buyer Products:

  • Direct Access Financial Corporation - InstaQuote
  
Healthcare/Pharma  
Business Management/Information Systems  
Operations Support  
Financial/Asset Management  
Accounting/Billing
Software that manages organizational accounting information specifically for the healthcare provider industry, including claims management, EDI, and general ledger software.

Buyer Products:

  • HealthLogic Systems Corporation
  

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Royal Bank of Canada (USA) n/a 37,825.843 12.02 8.25 1.89 n/a 2.45
Bank of Montreal (USA) n/a 12,427.682 8.34 6.57 1.01 n/a 0.86
Beneficial Mutual Bancorp, Inc. n/a 925.475 47.92 44.52 4.82 6.52 1.96
Kearny Financial Corp. n/a 862.459 130.53 n/a 8.70 n/a 2.20
The Student Loan Corp. n/a 704.400 6.54 n/a 0.54 n/a 0.44
Nelnet, Inc. n/a 638.962 38.32 11.87 0.46 1.23 1.82
Guaranty Financial Group Inc. n/a 270.107 n/a n/a 0.31 n/a 0.32
Shore Bancshares, Inc. n/a 195.409 15.57 16.81 3.11 3.24 1.89
Fox Chase Bancorp, Inc. n/a 154.157 94.15 n/a 3.45 n/a 1.29
Ocean Shore Holding Co. n/a 61.759 20.46 n/a 1.73 n/a 0.96
1st Constitution Bancorp n/a 43.962 12.32 15.20 1.49 2.26 1.02
Cardtronics, Inc. n/a 39.812 n/a 4.77 0.08 0.09 n/a
Naugatuck Valley Financial Corporation n/a 38.648 n/a n/a 1.40 n/a 0.89
Security Bank Corporation n/a 25.589 n/a -0.34 0.16 0.40 0.18
Atlantic Southern Financial Group, Inc. n/a 22.046 6.69 n/a 0.39 n/a 0.33
WGNB Corp. n/a 17.506 n/a n/a 0.33 n/a 0.32
Tidelands Bancshares Inc. n/a 15.548 n/a n/a 0.45 n/a 0.41
Oak Ridge Financial Services, Inc. n/a 12.540 10.30 n/a 0.70 n/a 0.69
First National Bancshares, Inc./SC n/a 11.527 n/a n/a 0.25 n/a 0.22
FPB Bancorp, Inc. n/a 6.380 n/a n/a 0.45 n/a 0.31
CapitalSouth Bancorp n/a 3.802 n/a n/a 0.09 n/a 0.16
Buyer
  HSBC Holdings plc (ADR) n/a 112,135.496 7.07 7.86 1.17 1.52 1.30
Visa Inc. n/a 45,054.222 56.04 19.59 7.19 6.46 38.15
Target
  Royal Bank of Canada (USA) n/a 37,825.843 12.02 8.25 1.89 n/a 2.45
UBS AG (USA) n/a 37,114.421 n/a -2.88 0.55 4.62 1.36

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Conversion Services International Inc. 17.40% 1.303 n/a n/a 0.07 n/a n/a
Brookfield Properties Corporation (USA) n/a 2,930.751 8.49 5.10 1.00 1.31 1.06
Cousins Properties Inc n/a 722.445 107.01 11.07 3.50 3.66 1.43
Acacia Research- Acacia Technologies n/a 78.170 n/a -9.32 1.86 n/a 1.77
KANA Software, Inc. n/a 29.673 n/a 36.00 0.43 0.42 n/a
Buyer
  Intersections Inc. 33.00% 90.042 6.52 n/a 0.26 n/a 7.40
Tree.com Inc 28.00% 20.144 n/a -0.74 0.09 0.10 0.26
Target
  Corporate Office Properties Trust 1.90% 1,403.881 45.25 10.74 2.68 2.93 1.68
Highwoods Properties, Inc. 0.60% 1,633.669 32.86 9.09 3.55 3.45 1.43
Oracle Corporation n/a 87,954.866 15.29 12.64 3.74 3.68 n/a
Infosys Technologies Limited (ADR) n/a 13,820.148 11.10 11.32 3.01 2.99 4.09
Brookfield Properties Corporation (USA) n/a 2,930.751 8.49 5.10 1.00 1.31 1.06
Synovus Financial Corp. n/a 2,609.529 19.35 39.10 1.32 1.71 0.91
Teradata Corporation n/a 2,569.600 10.28 10.58 1.48 1.44 4.86
Genpact Limited n/a 1,529.591 13.99 14.15 1.54 1.52 4.81
Equity One, Inc. n/a 1,367.050 24.99 19.10 5.66 5.58 1.47
Franklin Street Properties Corp. n/a 902.153 25.97 12.60 7.33 7.25 1.05
Cousins Properties Inc n/a 722.445 107.01 11.07 3.50 3.66 1.43
Fair Isaac Corporation n/a 708.748 8.44 8.46 0.95 0.92 n/a
Brandywine Realty Trust n/a 656.758 10.10 3.05 0.84 1.06 0.43
CoStar Group, Inc. n/a 605.837 22.58 24.95 2.88 2.84 2.76
Harte-Hanks, Inc. n/a 355.144 4.68 5.26 0.32 0.32 n/a
VASCO Data Security International, Inc. n/a 355.059 14.35 12.97 2.63 2.51 4.59
iGATE Corporation n/a 307.057 10.60 9.41 1.25 1.34 2.81
SuccessFactors, Inc. n/a 298.500 n/a -3.54 3.04 2.66 n/a

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Global Cash Access Holdings, Inc. n/a 181.709 8.69 3.38 0.28 0.26 n/a
Target
  Ambac Financial Group, Inc. n/a 347.560 n/a -0.08 -0.05 0.47 n/a
Sanders Morris Harris Group n/a 168.171 5.18 26.52 0.89 0.80 1.14
National Holdings Corporation n/a 4.926 n/a n/a 0.06 n/a 1.00

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Strayer Education, Inc. n/a 2,946.187 38.71 37.16 7.94 7.57 16.39
Corus Bankshares, Inc. n/a 55.859 n/a -0.23 0.11 0.47 0.09
Buyer
  Wells Fargo & Company n/a 91,477.459 13.55 13.67 2.58 2.10 6.62
Banco Santander, S.A. (ADR) n/a 58,602.754 4.79 5.29 2.68 1.37 1.10
Visa Inc. n/a 45,054.222 56.04 19.59 7.19 6.46 38.15
American Express Company n/a 20,773.665 6.31 7.22 0.63 0.65 1.66
Simon Property Group, Inc n/a 11,733.087 23.66 8.00 3.10 3.03 3.54
Fiserv, Inc. n/a 5,606.907 9.29 10.71 1.17 1.20 n/a
Strayer Education, Inc. n/a 2,946.187 38.71 37.16 7.94 7.57 16.39
Concur Technologies, Inc. n/a 1,492.489 86.86 53.40 6.93 5.54 4.52
Target
  Mizuho Financial Group Inc. (ADR) n/a 32,352.342 14.51 17.72 0.97 n/a n/a
Prudential Financial, Inc. n/a 11,354.720 8.32 7.38 0.36 0.44 0.61
Ameriprise Financial, Inc. n/a 4,342.794 7.41 6.97 0.54 0.55 0.65
Strayer Education, Inc. n/a 2,946.187 38.71 37.16 7.94 7.57 16.39
Genpact Limited n/a 1,529.591 13.99 14.15 1.54 1.52 4.81
CapitalSource, Inc. n/a 1,172.502 19.59 3.32 0.83 2.65 0.41
Ambac Financial Group, Inc. n/a 347.560 n/a -0.08 -0.05 0.47 n/a
The Phoenix Companies, Inc. n/a 263.120 n/a -0.96 0.11 0.12 0.20
Sanders Morris Harris Group n/a 168.171 5.18 26.52 0.89 0.80 1.14
Acacia Research- Acacia Technologies n/a 78.170 n/a -9.32 1.86 n/a 1.77
Corus Bankshares, Inc. n/a 55.859 n/a -0.23 0.11 0.47 0.09
COMSYS IT Partners, Inc. n/a 52.392 2.01 2.57 0.07 0.07 n/a
Crystal River Capital, Inc. n/a 17.434 n/a 0.27 0.11 n/a n/a
Atlantic American Corporation n/a 16.209 12.23 n/a 0.14 n/a 0.23
National Holdings Corporation n/a 4.926 n/a n/a 0.06 n/a 1.00

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Interest Income 87,561.0 39,135.0 126,696.0
Total Revenue 87,561.0 39,135.0 126,696.0
Interest Expense 46,142.0 20,472.0 66,614.0
Loan Loss Provision 21,600.0 16,524.0 38,124.0
Total Expenses 67,742.0 36,996.0 104,738.0
Non Operating Items
Non-Interest Income 28,487.0 9,419.0 37,906.0
Non-Interest Expense -40,991.0 -49,695.0 -90,686.0
Income Before Taxes 7,315.0 -38,137.0 -30,822.0
Income Taxes 1,250.0 -5,053.0 -3,803.0
Income After Taxes 6,065.0 -33,084.0 -27,019.0
Net Income - Excl. Xord. Items 6,065.0 -33,084.0 -27,019.0
Discontinued Operations 0.0 -142.0 -142.0
Net Income - Incl. Xord. Items 6,065.0 -33,226.0 -27,161.0
Preferred Dividends -902.0 -427.0 -1,329.0
Income Avail. to Common 5,163.0 -33,653.0 -28,490.0
Share Items
Basic Avg. Shares Outstanding 4,544.0 2,137.0 6,681.0
Basic EPS - Excl. Xord. Items 1.14 n/a -4.04
Basic EPS - Incl. Xord. Items 1.14 n/a -4.07
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 4,563.5 2,137.0 6,700.5
F.D. EPS - Excl. Xord. Items 1.13 n/a -4.03
F.D. EPS - Incl. Xord. Items 1.13 n/a -4.05
Dividends Per Common Share 2.56 1.71 4.27
Balance Sheet
Assets
Cash and Due Bank 39,341.0 22,233.0 61,574.0
Other S.T. Invest 0.0 0.0 0.0
Current Assets 39,341.0 22,233.0 61,574.0
Loan Loss Reserves -20,346.0 -15,351.0 -35,697.0
Loans 922,330.0 467,022.0 1,389,352.0
Other Interest Earning Assets 605,489.0 185,791.0 791,280.0
Accum D&A 0.0 0.0 0.0
PPE, Net 13,000.0 7,031.0 20,031.0
Goodwill & Intangibles 112,054.0 20,211.0 132,265.0
Other Assets 138,963.0 62,090.0 201,053.0
Other LT Assets 0.0 0.0 0.0
Total Assets 1,831,177.0 764,378.0 2,595,555.0
Liabilities
Accounts Payable 68,229.0 0.0 68,229.0
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 72,141.0 0.0 72,141.0
ST Debt 371,541.0 67,867.0 439,408.0
Deposits 874,051.0 418,840.0 1,292,891.0
Other Interest Bearing Liabilities 0.0 673.0 673.0
Other (Current) Liabilities 0.0 0.0 0.0
Current Liab. 1,385,962.0 487,380.0 1,873,342.0
LT Debt 284,176.0 183,350.0 467,526.0
Total LT Debt 284,176.0 183,350.0 467,526.0
Minority Interest (BS) 0.0 2,983.0 2,983.0
Other LT Liab. 0.0 40,662.0 40,662.0
Total Liabilities 1,670,138.0 714,375.0 2,384,513.0
Shareholders Equity
Redeemable Preferred 0.0 9,825.0 9,825.0
Preferred Stock 24,151.0 0.0 24,151.0
Common Stock 65,361.0 7,124.0 72,485.0
Additional Paid in Capital 0.0 59,883.0 59,883.0
Retained Earnings 77,695.0 -22,465.0 55,230.0
Other Equity -6,168.0 -4,364.0 -10,532.0
Total Equity 161,039.0 50,003.0 211,042.0
Total Liab. & Equity 1,831,177.0 764,378.0 2,595,555.0
Shares Outstanding 4,562.1 2,137.0 6,699.1
Cash Flow
Operating Cash Flow
CF Net Income 6,065.0 -33,226.0 -27,161.0
CF Depreciation 1,406.0 1,968.0 3,374.0
CF Amortization 1,824.0 0.0 1,824.0
CF Deferred Taxes -1,969.0 -185.0 -2,154.0
Other Non-Cash Items 0.0 25,375.0 25,375.0
Change in Working Capital 36,178.0 19,325.0 55,503.0
Total Cash From Operating Activities 43,504.0 13,257.0 56,761.0
Investing Cash Flow (not calculated)
Capital Expenditures -2,351.0 -1,959.0 -4,310.0
Other Investing Cash Flows -22,078.0 -40,367.0 -62,445.0
Total Cash From Investing Activities -24,429.0 -42,326.0 -66,755.0
Financing Cash Flow (not calculated)
Dividends Paid -12,397.0 -3,882.0 -16,279.0
Purchase Or Sale of Stock 20,949.0 13,662.0 34,611.0
Purchase and Retirement of Debt -74,020.0 24,766.0 -49,254.0
Other Financing Cash Flow 50,881.0 -182.0 50,699.0
Total Cash From Financing Activities -14,587.0 34,364.0 19,777.0
Exchange Rate Effects -103.0 0.0 -103.0
Net Change in Cash 4,385.0 5,295.0 9,680.0
Cash Taxes Paid 9,196.0 4,976.0 14,172.0
Cash Interest Paid 51,829.0 23,423.0 75,252.0