Executive Summary
Credit union executives know that there are many potential benefits to exploring mergers. Ultimately the decision to pursue inorganic growth through mergers is a strategic choice and requires discussion between the board and senior management. It's almost impossible to successfully advance organic growth and a merger at the same time, because mergers come with huge opportunity costs like the redirection of resources towards due diligence, negotiation, and regulatory compliance. Even if all parties agree on the goals and strategy, the implementation of a merger will take years to reach full value.
You must be clear about the "why" before you pursue the "what" or "how" of a merger.
Credit Union Implications
It is important to begin with aligning strategically with your board on prioritizing the reasons why a merger should be considered. Depending on your credit union's unique needs and potential opportunities for your members here is just a few reasons for exploring inorganic growth:
- offering new products and services
- expanding your reach to new members and new markets
- driving greater impact in the communities you serve
- accessing new technology
Whether your credit union is actively seeking merger opportunities or not, these insights will help prepare your board and executive team with the strategic steps you need to take now. Download the full brief now to learn more about the major reasons why credit unions explore mergers, how to calculate your opportunities cost threshold and discover key questions to include in your merger playbook to assess the alignment between the two organizations.
Filene’s Center for Leadership, Strategy & Governance is generously funded by:
