SEATTLE–CEO Advisory Group has released a new white paper, “From Discovery to Integration: How to Manage the Four Phases of a Successful Credit Union Merger”.
“Few industries have such a definitive financial path as that which defines today's credit union economy. In 2016, the average credit union size was $219 million,” said Glenn Christensen, president of CEO Advisory Group. “By 2036, the number of credit unions is expected to decline by 45% from those which existed in 2016; however, the average value of each credit union is expected to increase to almost $2.6 billion in that same timeframe.”
The result of that trend line, said Christensen, is that as the average credit union size increases, the number of credit unions is simultaneously shrinking, meaning merger integration has become the number one topic for successful CU leaders.
"We often hear leaders say they don't want to grow their credit unions for growth's sake,” said Christensen. “In fact, that approach will almost assuredly kill a credit union in today's market."
CEO Advisory Group, an organization that specializes in merger integration, strategic planning and assisting with succession planning, said the new white paper is designed to help guide credit unions through the merger process. The guide identifies the four essential phases those credit unions that manage to survive will need to undertake:
- Discovery & Integration
- Due Diligence
- Communication & Approvals
- Integration
"The number-one question credit union CEOs and board members should be asking each other is this -- 'Are we satisfied just surviving as a credit union, or do we have an obligation to our members to thrive?'” said Christensen.
For info: www.ceoadvisory.com.
In addition, CEO Advisory has also released a new video, which can be seen here: https://youtu.be/89j5gVcw3fA