GROWING PAINS: How to manage the challenges of growth through acquisition.

• Author: Sutherland, Spencer
• Position: Focus

It's been a big year for mergers and acquisitions across all industries and throughout the country. Online retail giant Amazon purchased Whole Foods. Verizon added to Yahoo to its portfolio. IKEA snatched up freelance handyman company TaskRabbit, and WebMD, Popeyes Louisiana Kitchen and Kate Spade were all acquired by larger companies.

Utah also had its fair share of mergers and acquisitions in 2017. The deals span industries, from banking and tech to accounting and real estate. Why? Growth through mergers allows businesses to consolidate operations while at the same time offering additional products or services.

In February, Salt Lake City-based accounting, auditing and tax firm Haynie & Company acquired another Utah company, Robison, Hill & Co. By purchasing the Holladay-based tax audit firm, Haynie & Company hopes to increase its strength in bankruptcy and employee benefit plan markets. The acquisition also raises the company's employee count to 120 across five offices.

In August, Chicago-based commercial real estate firm Cushman & Wakefield announced the acquisition of the Cushman & Wakefield Commerce operations in Utah, Nevada and Washington, including the 200 brokers in those states.

One of the state's largest acquisitions took place in October, when the banking division of People's Utah Bancorp acquired Banner Bank's seven Utah locations and $260 million in loans. The newly acquired branches--located from Woods Cross to Salem--will be rebranded as Bank of American Fork.

This is not the first foray into mergers and acquisitions for People's Utah Bancorp. In 2013, the holding company merged Bank of American Fork with Lewiston State Bank. In November, People's Utah Bancorp completed the acquisition of Town & Country bank in St. George as well.

Despite People's Utah Bancorp's activity in the M&A space over the past few years, president and CEO Richard Beard says, "It's just one tool in the kit--our business isn't M&A, our business is banking."

The mergers and acquisitions may have not been the company's primary focus, but Beard says they have learned a lot throughout the process. Many of those learnings not only apply to banks but any company considering a merger or acquisition.

SAVINGS THROUGH CONSOLIDATION

People's Utah Bancorp's acquisitions have come during a time of rapid consolidation of the entire banking industry, which has shrunk from 9,000 banks to 5,000 over the past 20 years.

Beard says the consolidation is a result of several factors. "There have...