M&A · Financials · National Commercial Banks
Shore Bancshares Inc to acquire Severn Bancorp Inc
Announced Mar 3, 2021 · Closed Oct 29, 2021
Deal value$146M
Premium—To unaffected price
EV / Adj. EBITDA—
ConsiderationCash and stock$11.30 per share
Transaction
- Acquirer
- Shore Bancshares Inc (SHBI)
- Target
- Severn Bancorp Inc (SVBI)
- Buyer type
- Strategic
- Offer price per share
- $11.30
- Enterprise value
- —
- Status
- Closed Oct 29, 2021
Deal protections
- Break fee (target pays)
- $5.0M · 3.4%
- Reverse fee (buyer pays)
- —
- Go-shop
- —
- Financing
- —
Advisors
- To the acquirer
- Janney Montgomery Scott
- To the target
- Piper Sandler
Sector context · Financials
- Comparable deals
- 11 in the prior 24 months
- Premium
- Sector median 45.7%
- EV / Adj. EBITDA
- —
- Break fee
- 3.4% vs. 3.6% sector median
Timeline
- AnnouncedMar 3, 2021
- Proxy filedSep 16, 2021
- Definitive proxySep 16, 2021
- Shareholder voteOct 22, 2021
- ClosedOct 29, 2021
Valuation · fairness opinions
Other analysisJanney Montgomery Scott$9.30$12.69
Other analysisJanney Montgomery Scott$10.39$13.75
Other analysisJanney Montgomery Scott$10.04$13.87
Premiums paidJanney Montgomery Scott$10.11$12.64
Precedent transactionsPiper Sandler$4.67$9.00
Precedent transactionsPiper Sandler$5.76$9.06
Precedent transactionsPiper Sandler$9.25$16.14
Precedent transactionsPiper Sandler$9.70$18.24
Offer $11.30
Implied value per Severn Bancorp Inc share by analysis, from Janney Montgomery Scott and Piper Sandler · DCF discount rate 11%–13%.