Research & Thoughts

Post Merger Integration

Making the most of day 2

In the days following the successful merger of financial institutions, firms can either feel satisfied with a shallow level of branding integration, or strive for a deeper combination that allows them to unlock the true potential of the merger.

Often, firms stumble on human issues, waging battles of territory and raising questions of ownership that are frequently settled by decree rather than a full assessment of options and opportunities. Or, firms undertaking a series of rapid acquisitions may ignore questions of customer value or long-term potential in order to sustain the pace of growth.

Firms that follow these approaches rarely achieve the full potential that their combination once promised. Although anticipated cost reductions may be found in the combination of back-office infrastructure, firms that pursue surface-level integration fail to deliver significant value to customers. They may also miss significant opportunities to enhance their infrastructure or revamp business models at a time when everyone is primed and ready for change.

Capco believes there is much value to be unlocked when firms look beyond the obvious merger tasks required to operate on Day One, looking instead to what occurs on Day Two. This report describes specific windows of opportunity that are present in a post-merger environment and how to capitalize on them.