MADISON, Wis. -
The paper from the Filene Research Institute, "Boards Role in Credit Union Mergers," offers a number of suggestions for "optimizing" the process, which it suggests is a matter of "when" not "if." Authored by Dr. William A. Brown, associate professor with the Bush School of Government & Public Service at Texas A&M University, found that one-quarter of credit union boards reported active involvement in merger discussions and planning, and about the same number reported "minimal" engagement.
Regardless of which end of the spectrum a board falls on, Brown had these suggestions for boards:
* Incorporate merger and acquisition scenarios into strategic planning. Two-thirds of those interviewed failed to do this, Brown said.
*Develop a succession plan for the CEO. Brown noted many smaller credit unions cite the retirement or resignation of their CEO as one of the main reasons for a merger.
* Think critically about board roles in the merger process.
* For CUs planning to merge, seek and evaluate multiple potential partners, evaluate the broad range of issues under consideration, and don't forget to take into consideration softer issues such as culture and synergies of the two organizations. For info: www.filene.org.
