Four ways to ensure a good merger fit

One factor that credit unions search for when choosing a merger partner is a “good fit.” But what does “fit” mean? It’s not like trying on a pair of shoes where you can tell instantly if the fit is comfortable or not. With mergers, there are several ways to consider whether the fit is good. Here are four criteria to consider.

Cultural Fit

Cultural fit means the two organizations share the same philosophical tenets and are driven by the same vision, mission, purpose, and values.

“If you’re looking at a merger opportunity, you have to be mindful that two institutions are coming together, so you need to consider what that is going to look like from a culture perspective,” says Adele Sandberg, President/CEO of $300 million AEA FCU, Yuma, Arizona, one of the credit union leaders to discuss this topic in “More for Members: Credit Union Leaders Plan Post-Pandemic Merger & Acquisition Strategies,” a three-part DDJ Myers white paper. “If you have clashing cultures, it’s going to be difficult and maybe even disruptive to the smooth operation of the credit union.”

 

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