Strategic Resource Management (SRM) said it has launched a consulting focus area dedicated to helping credit unions and banks capture maximum benefit from vendor contracts during and after a merger or acquisition.
The Memphis-based company said this new focus area builds upon its direct experience, market insight, and a "robust proprietary database of best practices and pricing models."
When credit unions or banks go through mergers and acquisitions, SRM said they often have conflicting vendor contracts, many with time constraints or financial penalties. "The M&A vendor advisors at SRM will help review and negotiate contracts to maximize both cost savings and opportunities for increased revenue through contract optimization," the company said in a statement.
According to SRM, the company's approach has the dual focus of minimizing liability from vendor agreement cancellations and increasing buying power during and after the transition.
"Anyone who has been involved in a financial institution merger or acquisition knows it is a time of opportunity and critical decisions. So many considerations go into such transactions, most of which legal teams oversee," said Patrick Goodwin, president of SRM. "The benefits of our proprietary benchmarks and experience go well beyond the scope of work offered by traditional advisors – bringing an innovative and proven approach that mitigates expenses and maximizes revenue."
SRM said it focuses on the "red flags" to be aware of with vendor contracts. The company said provisions such as auto-renew language built into contracts, leveraging and maximizing new combined larger buying power, timing of negotiations and cancellations relative to closing dates, potential future acquisitions, volume-based pricing scenarios, and termination language all are examined and compared to SRM's databases.
"Our team also will consider the important cultural fit from the vendor side," Goodwin said. "Are the vendor service level needs from contracts post-merger the same as pre-merger? We even add value as an objective third party with no emotional attachments to long-term vendor relationships that might get in the way of prudent financial decisions."
SRM is headquartered in Memphis, with offices throughout Tenn. and eight other states, as well as in Canada..
For more information, visit
