Overview
We help institutions in the process of M&A evaluate their existing contracts and their co-dependencies, to allow the new entity to start off on the right path operationally. Our work yields updated terms and pricing for the new entity, and we can assist with conversion strategy and implementation when new vendors and solutions are chosen.
Common M&A Challenges:
- Mergers, acquisitions or major operational or leadership restructuring commonly leads to rationalization of existing vendors across both parties
- Cost-cutting initiatives are not uncommon, even if the new entity’s goals are growth and technology innovation
- FIs must be aware of the risks of early termination fees and other costs related to uncoupling from technology platforms
- Conversion of common systems – specifically core platforms – can create risks related to operations, data, compliance, and much more
- Educating customers and members on new systems and processes
- Strategic alignment with future goals while considering contractual terms, pricing, and the future tech stack
How Our Merger & Acquisition Experts Can Help:
- Experienced in helping merging institutions assess both vendors, evaluate capabilities, develop vendor strategies to support long term goals and future tech stacks, and select best vendors to optimize strategy and minimize customer/member impact.
- We work with both parties to assess major 3rd party agreements, benchmark potential outcomes for market competitiveness, support final selection with goal of achieving meeting strategic goals, cost savings, minimizing exit penalty provisions, and favorable business terms.
- Lead complex price negotiations for all major contracts including technology and payments, achieving exceptional market- competitive results, and providing implementation support through intricate conversions and data migrations.
- Our work yields strategic alignment with updated market competitive terms and pricing for the new entity, along with our existing partnerships, contractual and strategic considerations, and support rationalizing the best operational path forward
“In working with SRM, there is not a winner or loser – they’re in it for the long haul, and everyone’s going to win… The partnership is mutually beneficial. We are all better off doing business together.”
– Robert Messer, Chief Financial Officer of American National Bank of Texas
Read the full case study here.
Brent Lapp
Executive Vice President
“M&A scenarios are the perfect time to re-evaluate your contracts and get the fresh start you need. SRM can negotiate favorable business terms with your vendors during this critical time, with our specialization in supporting M&A and achieving optimal business terms.”
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