Merger interests rise in banking, health care

Merger activity is greatest right now in banking and health care, according to BKD Corporate Finance President Steve Blumreich, who helped match Springfield Trust & Investment Co. with its buyer, Central Trust & Investment Co.

Blumreich said struggling banks are looking for partners to shore up their futures, and health care companies are navigating through continually increasing costs of doing business.

BKD Corporate Finance, the mergers and acquisitions division of Springfield accounting firm BKD LLP, counts several local health care companies among its recent client transactions, including CoxHealth's sale of Primrose Place Nursing Home in May and McQueary Brothers Drug. Co.'s May 2008 merger with McKesson Corp.

BKD Corporate Finance employs specialists in Springfield, Indianapolis and Denver.

"Most of the clients we represent are privately held, and many times they're family-owned companies," Blumreich said. "Usually they're in the $5 million to $200 million range - we're not working on the billion-dollar transactions that Wall Street tends to write about."

Blumreich said that in most deals - including the case of Springfield Trust - companies have a few common factors in mind when considering a merger.

"The quality of service and the reputation is always a big factor, and the market presence also comes into play," Blumreich said. "What we do is analyze the company to see what characteristics and values they have, and who would be the best merger partners."

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