I was working on cleaning up old notes and found some advice we gave to a client a few years ago. Still relevant so I thought I’d share.

When mergers don’t lead to improvements in income, expense control, efficiency, or long-term generation of value it is usually because the merging credit unions didn’t clearly identify the desired merger impact expectations up front. In the end, the merging parties end up with a larger but less efficient credit union that fails to create new value for member-owners. In short, a wasted effort.

The merger discussion/decision objective should be, primarily, to determine if a merger of the organizations is inspired by shared impact expectations, and whether a merger of the two parties will satisfy those expectations.

So, what impact do you want to make for the benefit of your members, and field of membership, that a merger can help with? Know the answer to that question, and then use your expectations constructively as you seek and engage potential partners.


Image by Gerd Altmann from Pixabay

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