Merger and Acquisition Services for Credit Unions
Recent events in the credit union industry, economic realities and increasing competition have created something of a "perfect storm" for credit unions considering merger options.
Increasingly, credit unions are viewing mergers as a viable growth strategy and a means to provide additional value to their members. These credit unions are experiencing the inherent challenges in planning and executing a successful merger strategy - from selecting the right merger partner, to melding of cultures, strategies and operations. Experienced professionals can guide credit union leaders through planning and execution steps to optimize merger opportunities and maximize member value.
How we can help
Our merger consulting modules are tailored to meet the specific needs of each credit union and can include any combination of the following:
- Merger Partner Selection
Each credit union is unique in its strategies, corporate culture, business objectives and the membership it serves. Realizing maximum benefits begins with determining key characteristics that will provide opportunities to add value for all stakeholders.
We begin the merger partner selection process by developing custom criteria for potential merger partners. By analyzing credit union industry data and tapping into our credit union network and our relationships with centers of influence, we create a preliminary list of merger candidates. A communication plan, customized to respect the uniqueness of each merger candidate, is developed to assure the merger overture is positively received.
- Due Diligence Review
The purpose of the due diligence review is to reduce exposure to financial loss. The specific procedures performed are dependent upon the profile and operational environment of each merging credit union. We make sure you're covered by conducting in-depth assessments of loans, investments, liabilities, shares and any other areas posing significant risk.
- Regulatory Application Assistance
Once a merger partner has been selected, we will assist in the development of a comprehensive merger business plan that meets traditional planning requirements and addresses the specific areas of interest that are the subject of regulatory focus. Knowing the right people to talk with and the critical issues to address allow us to help efficiently navigate the regulatory application process.
- Integration Planning
Successful integration of cultures, strategies, and operations is paramount in delivering greater value to the combined membership. Studies have shown that most merger synergies must be captured in the first few years. We develop a comprehensive plan including critical communications, member retention strategies, and organizational and operational integration considerations and convert all elements into a task-oriented integration project schedule.
- Integration Consulting and Support
During the planning phase, we identify those tasks and decision points that would benefit from ongoing consultation and support. The objective of our integration consulting and support services is to minimize impact on the credit union's ongoing operating personnel and to provide focused experience, knowledge, and insight to assist management in executing an effective integration.
Why RSM McGladrey
RSM McGladrey brings together a unique mix of experience, knowledge, analytical skill, business sense, and creative energy, all focused on the credit union industry and your specific business needs. In addition to internal expertise, we have partnered with the nation's leading facilitator of credit union charter changes and mergers, Allen Carver, to optimize opportunities for success of your merger initiatives. Since forming his own firm, Allen has completed over 200 mergers, including the largest merger in credit union history.
