Unity Bank- Merger and Acquisition Essay

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1. Case Name: Unity Bank- Realizing value from an M&A integration 2. Problem Statement The primary question of the case is: Unity Bank has acquired Delta to realize its dream of becoming the World No 1 provider of share registry services. The primary problem is “How to successfully integrate Unity Bank and Delta within the specified timeframe and simultaneously achieve the Target savings?” The secondary question of the case is: The integration posed multiple challenges but it was critical to infuse the integration without affecting the existing business processes of both companies. 3. Background a. Describe the acquirer company/department 1) History - Unity bank was founded in South Africa in 1982 and employed around…show more content…
The new entity could leverage the core competency and brand recognition in respective market segment. - Unity bank has a global footprint and Delta would provide the necessary opportunities in United States - The pricing offer for Delta had been properly negotiated and firm valuation was accurate - It was an ambitious acquisition for Unity bank because Delta had comparatively much bigger operation in United States but the key to this issue would lie in the integration result. ii) Software • Choosing the enterprise platform - Unity has a proven system BLAIR which could address all the business needs of UNITY but new development has to be done to incorporate the service offerings of Delta. A development cost of 100 Weeks, 30 person team at $120 per hour has to be incurred to make BLAIR serviceable to Delta clients. The Unity IT staff is well versed with BLAIR hence in house competency is not an issue. But in the long run BLAIR can be a bottleneck for UNITY as it is written in COBOL. New IT professionals having COBOL competency are hard to find as it is an obsolete language and training cost of new professionals and also the end users for DELTA would be high. - DELTA’s Leader is a new system which is not proven and had only been used for limited number of clients. But the strength of leader lies in its next generation vision

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