COMMERCIAL BANK VALUATION

By William D. Miller

Published by John Wiley and Sons, Inc. 263 pages $105.00

Review by Alexander A. H. Bohtling, CPA, retired from Deloitte &
Touche LLP

As the author of Commercial Bank Valuation points out, this book was written to provide comprehensive discussion of methods of valuation and techniques used in bank mergers and acquisitions.

The various aspects involved in bank mergers and acquisitions are analyzed in substantial detail and recommendations are given as to procedures and reports to be followed and prepared. The numerous factors entering into bank mergers and acquisitions are well explained, as well as the methods used in conducting such negotiations.

The book consists of three parts--fundamentals of valuation, evaluating the bank and its market, and applying valuation to the acquisition process. These, in turn, are subdivided into 12 chapters, some being titled approach to measuring value, valuation for tax and accounting purposes, applying valuation to the acquisition process, and valuing a bank as a business enterprise. A very useful subchapter is headed banks with uncertain future loan loss exposure.

The author, William D. Miller, is responsible for business and market development for a major U.S. financial consulting and investment banking group.

In your reviewer's opinion, this book provides very practical and useful guidance for independent public accountants, banks, and bank holding companies. It gives the officers and directors guidance as to factors involved and techniques to be used should a merger or acquisition come about. *