The coming bank consolidation has been predicted for years. In fact, the next 18 months are destined to be a major “shake out” period when weak banks will be acquired or closed—and banks who are in a position to capture the best customers in town will become stronger and more profitable.
If a merger or acquisition opportunity like this landed unexpectedly in your lap…would you be ready?
Most banks wouldn’t be. Unfortunately, they’ll suffer years of pain, lost productivity and even reputational damage from what was previously viewed as the opportunity of a lifetime.
Here’s what I know from decades of guiding banks through mergers and acquisitions: You have no business doing an acquisition if you’re not ready.
Of course, it’s commonly known that 50% to 80% of mergers fail to meet expectations—in fact, they’re economically a disaster.
Because of the two years’ worth of “we-they” conversations…past and present behaviors…crazy-making by “the new guys”… and the fact that your team will be so pre-occupied with the conversation around the merger (as well as clean-up and culture clashes), that they’ll barely be able to focus on their own jobs.
Compound those cultural messes with sales disasters like, “We don’t know who our markets are.” “We don’t understand their strategies.” “We don’t understand who’s in charge.” “We’ve completely forgotten about the kind of customer to go after because we’re worried about our own stuff.” And, “We’ve so internalized everything that we’ve forgotten that banking is a business about the external things.”
But mergers and acquisitions don’t have to be this way. They can be systematic and systematized. They can give everyone a comfort level from the get-go—about what their role is and how things work. But you have to build a culture FIRST to be ready for a merger or acquisition opportunity that lands in your lap.
The good news is that you can now access this strategy call on “How to Ensure Your Merger or Acquisition Doesn’t Become a Train Wreck”, in our Bank Builders Strategy Series. If you are faced with this opportunity and/or challenge, you won’t want to miss this strategy session.
If you haven’t registered for our bank- Builders Strategy series, register today at https://emmerichfinancial.com//Bank-Builders/
President and CEO