Essay about Unity Bank

1130 WordsNov 22, 20105 Pages
UNITY BANK: REALIZING VALUE FROM AN M&A INTEGRATION EXECUTIVE SUMMARY • • • Oct-Nov 2006: Smaller company acquires a market leader June 2007: major integration: systems & operations Unity’s integration goals: • Save $60 million worth of IT expenses within 3 years on staff and infrastructure • Wants to be the world’s #1 provider of share registry services • Maximize shareholder wealth CIO, Stuart Irving worries: • Lack of due diligence because of legal problems • Hart Scott Rodino Act prevented proper communications • Unknown bugs within Delta’s operations might affect the integration’s timeline & budgetary goals • Present a short and efficient integration to the investors • OVERVIEW UNITY Strengths • • Very efficient…show more content…
Unity or Delta? Who should be in control? Delta employees knew their systems Unity is the acquirer If things are left as they are: Cost inefficient/Timely Trainings Duplicated jobs/salaries Affected by disengaged staff Can’t be sure who is a star performer DISCUSSION OF KEY ISSUES D. Attracting star performers Limitations of due diligence Unity is only familiar with upper management of Delta’s staff Disengaged/demoralized employees Unclear who is a top performer Not sure how to motivate a staff until their services are no longer needed B. Staff motivation C. Organizational structure D. Attracting star performers ALTERNATIVE 1: Create team-oriented incentive programs/ competitive environment ALTERNATIVE 2: Integration task force 50/50 staff SCENARIO 1: Demand increases SCENARIO 2: Stock decreases because of previous integration failures SCENARIO 3: Increase in Delta star-performer resignation SCENARIO 4: Sales decrease POSITIVE: Funds available to support programs POSITIVE: Competitive environment will speed up the process of integration POSITIVE: Staff is no longer demoralized and disengaged – able to assist with a speedy integration NEGATIVE: Staff is demoralized and disengaged – unable to assist with a speedy integration NEGATIVE: Increase in employee apathy and willingness to accept severance and look for employment elsewhere. POSITIVE: Allows to identify remaining star performers and retaining them NEGATIVE: Difficult to create and
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