Bank M&A Integration

Successful Bank Integration – Making M&A Work

Crowe merger and acquisition (M&A) integration consultants help financial institutions improve their ability to realize the intended value from a transaction. Drawing on their extensive financial industry experience, Crowe bank M&A specialists work with financial institutions to develop effective integration plans including the organization of multiple bank teams and the use of a proprietary bank M&A planning portal. Crowe uses its industry benchmarks, experience and process expertise to identify opportunities for improving efficiency and streamlining processes, recommend target staffing levels by department, and evaluate the maturity and effectiveness of IT and principal business systems. The expertise of Crowe bank M&A specialists helps you pinpoint where integration risks are most likely to diminish performance and where results can be improved by taking advantage of complementary strengths, minimizing risks, and building on core competencies. Our human capital specialists also help clients manage their people and culture transition through organization design, leadership selection, change management, culture alignment, and human resources functional support.

All too often, a bank merger or acquisition fails to achieve the expected results. In the 2016 Bank M&A Survey by Bank Director and Crowe Horwath LLP, 31 percent of bank directors cited identifying and retaining key talent aligned with their culture as one of the most difficult aspects of a recent acquisition.

Research indicates the following was the most difficult aspect of integration after closing a deal.

Research indicates the following was the most difficult aspect of integration after closing a deal.

Source: “2016 Bank M&A Survey” by Bank Director and Crowe Horwath LLP

Seven Essentials of a Successful M&A Integration

1 Base the transition strategy on the value drivers on which the acquisition was established.
2 Aggressively manage communication to answer stakeholder questions and get stakeholder acceptance, including from management, employees, customers, community, and shareholders.
3 Launch small, fast-paced task forces that accelerate implementation of the opportunities most likely to positively affect the new institution.
4 Align roles and responsibilities to confirm that the organization’s desired direction is clear.
5 Build and reward behavior around important events and milestones that ultimately will have the biggest impact on the institution.
6 Assign people to be role models of the desired culture.
7 Link incentives with actions that promote the bank’s plan and help realize the transaction’s value.

There are numerous opportunities for miscues when merging or acquiring banks. With careful planning, consistent attention, and experienced guidance from Crowe M&A specialists, you can achieve smoother integration – and improve financial results.

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Rick L. Childs