If your institution is considering a merger or acquisition, you know you can expect to encounter complicated organizational and human dynamics compounded by numerous technology challenges. The cultural differences between the organizations can derail what on paper makes sound financial and operational sense. Pile on top of that the "melding" of disparate technology systems resident at each institution and the prospects for a successful outcome can feel dim.
Enter Cornerstone Advisors. Cornerstone knows that from the early stages of negotiation and due diligence to when the final deal is struck, an "integration mindset" is critical to a successful merger, and we have the experience and tools to help you adopt that mindset.
The Benefits to You
Once it is determined that "the deal has wheels," the development and/or integration of each organization's strategy needs to move forward with a singular focus. An integration mindset addresses the strategic, operational and cultural aspects of the merged organizations starting at the assessment phase (what are the pros and cons), carries through to detailed analysis during due diligence and negotiation (how do we leverage the best of both), and finally through to transition planning and integration (committing to building something greater).
Cornerstone works with your senior level team(s) to help set the stage for integration teams by creating a consensus around vision, mission, guiding principles and long term strategy for the new organization. To ensure you the smoothest possible transaction, Cornerstone:
- Assists in the design of change management architecture
- Facilitates merger integration teams
- Provides hands-on assistance with system selection, technology conversions, process and organization design
- Helps the new organization implement operational best practices
The Cornerstone Differentiation
Cornerstone's in-depth knowledge of financial institution operations and technology, objective benchmarking and best practice analysis, and strategic industry outlook assists you and your board of directors in capturing the organizational synergy your shareholders, employees and customers are expecting.
- We focus exclusively on providing services to mid-size banks and credit unions.
- Cornerstone consultants have senior level experience in every major functional area of bank and credit union operations.
- We are backed by an extensive portfolio of projects and "hands-on" expertise.
We've Done This Before
Here are just a few examples of work we've performed in this area:
- Acquisition of a $600 million bank by a $10 billion regional bank - Merger Integration Services, including creation of a technology integration plan and oversight of the smaller bank's conversion to the larger bank's core system. Cornerstone also worked with merger integration process teams responsible for back and front office integration, transition planning and integration project management.
- Two merging Midwest regional banks - Core system assessment to determine which core system could best meet the needs of the new $14 billion bank. Cornerstone also conducted a business needs and technology assessment and provided contract negotiation assistance.
- Publicly held East Coast bank resulting from the merger of two smaller institutions ($1.6 billion) - Merger Integration Services, including provision of a comprehensive merger integration plan that addressed organization, processes, products and technology systems.
- $250 million credit union acquiring a $70 million institution - Comprehensive Technology Assessment covering core, ancillary, telephone and infrastructure systems with recommended technology integration path for the combined institutions.
- Two Midwest banks merging into a $1.4 billion bank - Assessment of short-term integration requirements as well as a long-term technology plan for the combined institution.
- Southeast credit union ($3.2 billion) - Merger Integration and Technology Conversion Consultant overseeing all organization and technology integration initiatives for two $1B+ credit unions.
- West Coast bank acquisition ($8 billion) - Merger Integration, System Selection and Conversion Consultant in the acquisition of a $2.5 billion California bank by the North American division of a major international financial institution.
- Northwest regional bank ($4.5 billion) - Integration and Technology Conversion Consultant in the acquisition of a $400 million community bank by a much larger Washington state commercial bank.