Coming Together: Tips and best practices for making the most out of mergers

M&A activity has recently been on the rise as credit unions continue to merge with other credit unions and occasionally even banks to expand their market share and better serve members. There were 200 credit union mergers in 2017, and that activity isn’t expected to slow down any time soon.

Even though mergers can be a positive and strategic move for institutions and the communities they serve, mergers are often stressful and challenging situations to navigate from an operational and cultural perspective. The red tape, difficult decisions and competing credit union identities contribute to these challenges. However, there are steps that can be taken to ease the pain points associated with the merger process and to ensure the transition is as smooth as possible for all parties involved.

Conduct Proper Due Diligence and Invest Time in Preparation 

Once it has been decided that two credit unions will merge, it’s time to make tough decisions about contracts, which products and services will remain, and combining cultures.

 

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