In the world of business there is always possibility that a company may purchase or merge with another. This week Five Star Bank's parent company, Financial Institutions Inc., announced the purchase of Courier Capital for $9 million. Courier Capital is an advisory and wealth management firm with locations in Erie and Chautauqua counties. According to this source, Financial Institutions Inc. has a growth model which focuses on increasing efficiency and diversification to capitalize on opportunities in larger metro areas in Western New York. In fact, they have opened a Five Star branch in our very own City Gate and announced plans to open another branch at Twelve Corners in Brighton next year.
Acquisitions happen daily in the business world but paying attention to them, especially if they are local, might make a difference to you. If you are a prudent investor you may ask- is there any money to make from such business activity? The answer is: possibly.
If you work with a financial advisor, you should ask them about any potential mergers they are tracking or opportunities they anticipate in the upcoming months. In Rochester, within the last year alone, acquisitions of publicly traded companies have provided opportunities for some investors. For example, Lone Star Funds purchased Home Properties and Harris purchased Exelis and in both cases there were shareholders that were positioned to profit from such activity.
Staying informed and talking with an advisor can help position investors to make informed decisions about investment opportunities presented by corporate acquisitions!
Caroline Hill, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).