Capco Unveils New Report Outlining Strategies For Capitalizing On Opportunities Presented In The Post-Merger Environment

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Report Details the Advantages of an Aggressive Day-Two Merger Plan.

Capco, the global provider of consulting and managed services to the financial services industry, has published a new report detailing the challenges and opportunities presented to firms in the wake of a successful merger. The report, “Post-merger Integration: Making the most of day two” discusses the possibilities that a merger presents and the reasons why firms often fail to fully capitalize on them.

According to the report, institutions that undertake a growth-by-acquisition strategy frequently achieve little more than a “letterhead level” of integration, leaving difficult integration questions to be answered at a later time. Failure to make investments in the early stages of the new combination means firms are unable to fully capitalize on a window of opportunity that is open for a brief time following a merger.

Key highlights of the report reveal that:

  •     In the rush to take advantage of growing markets and good times, many combinations occur hastily. The resulting haste leads to mashups that often offer no value to customers, but big savings to the combined firms through back-office consolidation.
  •     Often, firms stumble on human issues, waging battles of territory and raising questions of ownership that are frequently settled by decree rather than a full assessment of options and opportunities.
  •     Whether a firm is involved in a business transformation or a merger, experience with past failures leads many in the organization to question whether the firm can carry off its new initiative successfully.

The report details activities frequently arising during the renovation and remodeling process that present the opportunity to create a fully integrated firm; one that delivers new value and services to its clients, enjoys greater scale at lower costs, and strengthens the business model in a way that will be proven in tougher times.

According to the report, a deeper post-merger integration effort looks beyond the obvious to uncover hidden value in the combination. Firms that quickly address issues of culture and territory are able to consider more strategic questions, such as:

  •     Which bank is most efficient in key operational areas?
  •     How does the merger affect ongoing transformation processes?
  •     Are there components the new firm can borrow from the acquired bank that will move transformation efforts forward?
  •     Are there areas of risk to that might otherwise set back the process?
  •     What value can we unlock for customers in a post-merger environment?

The findings of Capco’s report show that a serious consideration of questions like these will allow a firm to identify and rank opportunities that are created when true post-merger integration is sought. The report includes an examination of common obstacles firms must overcome to achieve deeper levels of integration, and recommendations to help jump-start the discovery process.

The report is available now at http://www.capco.com.

About Capco
Capco is a global business and technology consultancy dedicated solely to the financial services industry. Our professionals combine innovative thinking with our unrivaled firsthand industry knowledge to offer our clients consulting expertise, complex technology and package integration, and managed services to move their organizations forward. Through our collaborative and efficient approach, we help our clients successfully increase revenue, manage risk and regulatory change, reduce costs and enhance control. We specialize in banking; capital markets; wealth and investment management; finance, risk and compliance; and technology. We serve our clients from offices in leading financial centers across North America and Europe. To learn more, visit our website at http://www.capco.com.

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Lane Cooper

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