Theodore Poppitz


Education: Bachelor of Science in finance (May 1998)

McNair Project: What is a Small Bank in Kansas Worth? (1996)

Mentor: Michael Oldfather, Ph.D.

The banking landscape in Kansas is changing. Consolidation through mergers and acquisitions make buyers and sellers of Kansas banks ask: How much is the target bank worth? The valuation process usually involves a combination of ratio analysis and professional subjective estimates. Kansas banks so not typically sell at book value. Using step-wise statistical analysis for banks sold above book value, our search asks: Do substantial differences exist in bank merger premiums? If there are substantial differences, are these differences explainable? Knowledge of key variables in bank merger premiums will enable bankers to maximize their banks selling price.