Deal Flow
Letter · prints on one page
Transaction tear sheetData as of Nov 7, 2026
M&A · Financials · Savings Institution, Federally Chartered

Alerus Financial Corp to acquire HMN Financial Inc

Announced May 15, 2024 · Closed Oct 9, 2024

Deal value$116M
Premium—To unaffected price
EV / Adj. EBITDA—
ConsiderationAll stock

Transaction

Acquirer
Alerus Financial Corp (ALRS)
Target
HMN Financial Inc
Buyer type
Strategic
Offer price per share
—
Enterprise value
—
Status
Closed Oct 9, 2024

Deal protections

Break fee (target pays)
$4.6M · 4.0%
Reverse fee (buyer pays)
$4.6M · 4.0%
Go-shop
No-shop
Financing
—

Advisors

To the acquirer
Raymond James
To the target
D.A. Davidson

Sector context · Financials

Comparable deals
56 in the prior 24 months
Premium
Sector median 34.0%
EV / Adj. EBITDA
Sector median 15.6x
Break fee
4.0% vs. 3.0% sector median

Timeline

  1. AnnouncedMay 15, 2024
  2. Proxy filedAug 1, 2024
  3. Definitive proxyAug 1, 2024
  4. Shareholder voteSep 12, 2024
  5. ClosedOct 9, 2024

Valuation · fairness opinions

Precedent transactions$13.60$35.25
Precedent transactions$13.19$36.38
Other analysis$12.86$32.68
Other analysis$13.21$33.23

Implied value per HMN Financial Inc share by analysis, from D.A. Davidson · DCF discount rate 9.59%–21.59%.

Sources
  • 8-K (EX-99.2) · May 15, 2024
  • 425 (EX-99.2) · May 15, 2024
  • 8-K · May 15, 2024

Adj. EBITDA is operating income + D&A + impairment, restructuring, deal costs and stock compensation, less any large gain on a sale, last twelve months, from the target's filings. Calculated by Castle, so it can differ from a bank's adjusted figure.

Prepared with Castle from public SEC EDGAR filings. Figures are extracted automatically; verify against the source documents. Not investment advice.