The decision of NexBank Capital, Inc. to acquire the College Savings Bank was the best that the company has ever done. This is because of the benefits that both companies expect to reap from each other following the transactions. The acquirer, NexBank Capital, Inc., hopes to take advantage of the enormous clientele base possessed by the College Savings Bank. This would have a myriad of positive effects on the company’s revenue collection and the profitability in general.
On the other hand, the College Savings Bank is expected to gain in plenty from the acquisition. One of the ways in which it is supposed to benefit is through the vast expertise of the acquirer in the management of investment strategies. As an investment management firm, NexBank Capital, Inc. manages multiple asset strategies on behalf of its clients. This puts it at a better position to choose the best investment strategies for the acquired company, depending on the needs of its clients.
The other way in which the college Savings Bank hopes to benefit from the acquisition by NexBank Capital, Inc. is through the vast capital base of the company. Due to the large size of the company, it possesses a considerable amount of capital that will allow the College Savings Bank the latitude to invest in more profitable investment strategies which involve a higher investment risk than the one it currently assumes. As a result, the bank will manage to yield better investment returns on the savings of their clients.
The College Savings Bank has been in operation since 1987. It has specialized its services in providing parents who have young kids anticipating joining colleges and universities to save for their future. The beauty of the College Savings Bank is that it provides the clients with a variety of savings programs that give them the freedom to select the best that suit the needs of their children. NexBank Capital, Inc., on the other hand, has been in operations for the past century, since 1922. The company provides a variety of financial services to its clients who are mainly institutions. However, individual investors also form a considerable part of the company’s client portfolio.