Merger Integration by yBZA0sm

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									About this presentation

 A working document to assist a bank client
 develop an early plan for the
 implementation of an expected merger.
Bank Merger Integration
  A Structure for Planning
Today’s merger context - uncertainty

   Financial, consumer, real estate … market turmoil
   Rapid merger agreements, little or no due diligence,
    potential surprises
   Large number of concurrent mergers – potential
    limitations on resources
   Public pressure to re-regulate financial markets – may
    divert scare resources and impact schedules
   New technologies that offer potential cost savings but
    add complexity – virtualization, cloud computing, etc.
Merger Implementation Objectives

 Minimize time and costs
   Get back to business as usual as quickly as
    possible
   Control costs

 Retain customers
The MI participants
                                   • The businesses define
                                     what is needed
              Internet
               Based
              Products
                                   • Computer and
                                     Internet based
   Computer                          products support the
    Based
   Products                          businesses, but
                      Business
                    Products and
                                     usually have distinct
                      Facilities
                                     organizations and
                                     facilities
The MI organization
                                       • The MI process needs
                                         to be given strategic
             Corporate                   direction and
             MI-PMO
                                         coordination centrally
       Shared
       Services
                                       • Implementation
       MI-PMO                            needs to be driven by
Business A   Business B   Business n
                                         focused business
 MI-PMO       MI-PMO      MI- PMO        units
Step 1: Inventory
     Business
                • Compare products to determine
                  which to keep and the sequence for
                  implementation to meet market
      teams       needs




    Computer
                • Compare systems, networks, data,
                  and operations to determine which
                  to keep and sequence to support
     Systems      current and new products




     Internet
                • Compare systems, networks, data,
                  and operations to determine which
                  to keep and sequence to support
     Systems      current and new products
Results for products and systems

Tier 1: Keep product or system, e.g., DDA
Tier 2: Probably keep, need more study
Tier 3: Probably use other bank’s, sell or
  terminate
Tier 4: Use other bank’s, sell or terminate
 Products and systems will move to tier 1 and be
  implemented or tier 4 and products will be sold
  or terminated and systems will be terminated
Step 2: Plan
                  • Determine best
                    combination of
                    products and
                    supporting systems
       Business     based on product
                    benefits and
          &         system costs
       Systems    • Determine best
                    implementation
                    sequence based on
                    on market benefits
                    and system costs
Update Results by Tier

Tier 1: Keep product or system, e.g., DDA
Tier 4: Use other bank’s, sell or terminate
Step 3 Implement

								
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