Eight keys to get banking M&A integration right

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Overview

We can often tell which deals will eventually succeed long before there are numbers to prove it. When they close, it’s clear that integration teams have bonded across both entities, that employees want to be a part of building something new, and that customers feel like they will come out ahead.

Of course, it doesn’t always work that way.

Every transaction is different, but there are steps you can take to stack the odds in your favor.

Eight keys for merger integration success - PwC

Merger integration: harder than ever?

It’s easy to announce a merger. But announcing a deal isn’t the same as successfully integrating a deal, and there’s a big gap between those who get it right and those who don’t.

The true heavy lift with bank deals is in integration planning and execution, and it’s getting harder to do it right for two fundamental reasons. First, customer expectations have ramped up significantly, and you may be surprised by how many customers may leave because of what seems like a trivial change to the merger team. And second, regulatory requirements have led to new, cross-functional processes that are tightly linked to the way financial firms operate—and integrating these processes can be extremely complex.

The eight keys

We’ve identified eight keys to getting banking M&A integration right:

  1. Staff the integration management office with top talent, and give them the authority to succeed
  2. Treat change management as more than an afterthought
  3. Think beyond cost savings
  4. Build in agility
  5. Invest in tools thoughtfully
  6. Go slow with data to go fast
  7. Choose your platform wisely
  8. Address regulatory filings early and thoughtfully

These principles can help you streamline the process and achieve benefits during the integration and after the integration is complete.

How PwC can help

Our teams in asset and wealth managementbanking and capital markets, and insurance are helping our clients tackle the biggest issues facing the financial services industry. With professionals across tax, assurance, and advisory practices, we can help you find ways to thrive even in a period of uncertainty. Whether you're preparing for regulatory changes, putting FinTech/InsurTech to work, or rethinking your human capital strategy, we work together with you to deliver value to your business.

For more information on how PwC can help, reach out to one of our leaders below or learn more about our deals practice.

Contact us

Joshua Carter

Partner, US Deals, PwC US

Scott Carmelitano

Banking and Capital Markets Deals Leader, PwC US

Rahul Wadhawan

Principal, Strategy&, PwC US

Neil Dhar

Financial Services Industry Leader, PwC US

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