Carl Marks Securities LLC acted as investment banker and exclusive financial advisor to American Bancorporation in the sale of substantially all of its assets pursuant to §363 of the U.S. Bankruptcy Code.  The sale of the assets of the Minnesota-based bank holding company, which closed on June 18, 2015, generated net proceeds of approximately $24 million. 

Engaged by the Board of Directors, Carl Marks led the transaction for American Bancorporation.  After an initial marketing period that involved a substantial number of parties, Carl Marks helped structure a unique stalking horse agreement in which Deerwood Bank would purchase either the bank subsidiary in a stand-alone transaction, or the bank and its wholly-owned mortgage subsidiary combined, at the discretion of American Bancorporation.  This unique and flexible structure allowed for a highly competitive auction in which the bank and the mortgage subsidiary were ultimately agreed to be sold to two separate buyers, Deerwood Bank and OSP, LLC.

“We are very pleased to have brought the sale of American Bancorporation to a successful conclusion, leveraging our deep experience in the community banking sector to help guide the Board through a challenging process,” said Evan Tomaskovic, CEO of Carl Marks Securities. “We expect to see a significant surge in mergers and acquisitions in the community banking sector over the next 12 months,” added Tomaskovic.

Legal counsel was provide by Lindquist & Vennum LLP, led by partners George Singer and Scott Coleman. 

Carl Marks Securities LLC, the broker-dealer affiliate of Carl Marks Advisor Group LLC, provides sophisticated financial advisory services related to private placement of debt and equity capital. Serving middle market companies, we provide a broad range of capital market alternatives as they seek financing for growth, mergers or acquisitions, restructurings or other purposes.