Members

Convenience: Should we provide for a larger geographical presence? Increase member access points and extend geographical coverage with more face-to-face locations?
Price: Do we support opportunities for competitive rates through combined financial resources?
Products and services: How can we create opportunities to research and implement products and services faster when member needs change?
Service/familiarity: How do we retain and obtain a friendly, recognizable employee base and leadership?

Credit Union

Scale/operating efficiencies: Can this be enhanced through combined systems and networks?
Preemptive approach: How do we remain sustainable and relevant to members?
Market penetration: Can we create greater presence in multi-dimensional/demographic marketplaces?
Diversification: How do we accommodate widened demand, product and service usage?
Liquidity: Do we need increased liquidity/funding mechanisms?
Asset/capital base: How do we ensure the larger institution allows for continued reinvestment in members?
Employee base: Are we looking for a larger selection of employees to identify future leadership and create succession plans?
Culture: Are we looking to strengthen our common stakeholder bond?

Employees

Growth: Will we provide additional opportunities provided by larger credit unions?
Compensation: Will movement into next the peer size allow us to provide higher comparable compensation packages?
Knowledge: Are we looking to offer enhanced cross training, specialized opportunities and collaborative ideas due to the increased number of employees?
Human capital: Do we want to be able to take a proactive approach to retain and obtain new talent, rather than having to fight for staff if faced with a takeover?

Board/Community Services

Brand: Will a greater presence in the communities we serve help us build an even stronger brand?
Giving back: Are we seeking a larger asset base to enable continued contributions to the communities served?
Community interest: Will we gain representation by board members from the geographic area and field of membership served?

How Can a Merger Be Structured? What Are Your Negotiation Points?

Before exploring mergers with any potential partner, you must internally agree on your credit union's walkaway (a.k.a. deal killer) points. At a minimum, the following points need to be clearly agreed to in a written document regarding what you are willing to negotiate: Name, charter, board representation, executive board officers, employee leadership, strategic vision, organizational structure, culture, headquarters, core system and technology.

Instant Insights /

How to Proactively Plan for Post-Pandemic Merger Opportunities

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