Credit Union Mergers: Celebrating the Success!

For many business leaders, part of the American Dream is creating a company that is so successful it will one day be sold to a larger entity.

While this goal is seen as part of a strategic investment for many industries, credit union leaders aren’t often on board with the idea of mergers and acquisitions for fear of falling under a stigma of failure. In reality, a successful credit union that is pursued for a merger demonstrates that the institution has characteristics that should be celebrated and recognized.

A number of factors are attributable to the decisions credit union leaders are faced with when the possibility of a merger is in play. In NCUA’s recently-released video, Credit Union Merger: Structure, Process & Benefits, the organization presents a foundation that should serve as an outline if you are considering a credit union merger.

Finding Qualified Representation

Finding the right acquiree representation is imperative to the success of your organization before you come to a decision, as well as after the merger is complete. Experienced professionals will help you remove the emotion from your decision and focus on an optimal outcome.

In consideration of your proposal, you should understand your fields of membership and have data that helps your representative understand key factors such as your financial condition and the number of members you currently serve.

Planning Properly

In today’s economy, mergers typically signify strategy, growth, and forward thinking as opposed to bail-out options.

When you properly integrate the idea of a merger into your planning process, you could realize the benefits of:

• Economies of Scale. Larger credit unions are able to disperse their overhead across a larger membership base, which means a lower impact on the bottom line and the workforce tasked with various responsibilities as a result of a larger staffing pool with which to work.

• Expanded Services. When confined to a lower budget, smaller credit unions are typically unable to offer a large menu of services to their members. After a merger, however, the existing membership base is often able to realize great benefits from expanded service packages which would have otherwise been unavailable to them.

By expanding services, you are helping to foster growth and stability with your existing and future membership bases.

Click Here to Download White Paper “Growth by Merger”

Understanding the Possible Benefits in Your Future

A well-planned merger contains wins for everyone involved. The following benefits could be realized from a properly represented credit union merger:

• Employees typically enjoy job security, as opposed to fearing layoffs.
• Members are granted a greater menu of services, lower rates, and greater accessibility to their funds by way of an increased physical footprint, as well as improved online options.
• The Community is rewarded with a stronger network of branches that provide a more extensive contribution in terms of charitable donations, volunteer involvement, and a powerful presence that propels relationships to a stronger level.

To learn more about how credit union mergers’ structure, process & benefits could impact your business, see our collection of merger videos today.