MADISON, Wis. — The CUNA CFO Council has released a new white paper, "The CFO's Evolving Merger Role."
The paper details merger business models and the experiences of their chief financial officers are profiled along with lessons from the corporate world. While the merger transaction may be easy, a host of other issues are often encountered, notes those who share their insights in the paper.
"If, for instance, two credit unions have separate core systems, the core system you choose not to keep may have multiple years left in the contract. Because you can't eliminate the acquired credit union's processing system until after the merger when their members' accounts are converted to the acquirer's system, these costs are incurred and expensed post merger. Not factoring these types of issues into the total "cost" of the merger can be a costly mistake," notes one CFO.
