In M&A, there’s no second chance to make a first impression
In one of the largest-ever bank acquisitions in North America, strategic planning helped drive a complex integration and seamless welcome for a regional bank’s customers.
SO MUCH NEEDS TO
HAPPEN IN THE
DAYS LEADING UP
TO DAY ONE
The Situation
The transaction was an incredible opportunity for a North American bank to scale up and expand further into US markets. On closing, the acquisition of a large regional bank would add hundreds of branches, commercial banking and wealth management offices, thousands of employees, and more than 1 million customers. It was a big deal, in more ways than one, and the North American bank aspired to deliver a world-class integration.
Mergers and acquisitions (M&A) had been a key component of the bank’s growth strategy. But this acquisition was different It was among the largest North American banking M&A transactions in recent years, and it was highly complex. Every domain and department was likely to be affected in some way as part of the integration, and the North American bank wanted to avoid undue disruption to daily operations. A seamless transition to introduce the brand and experience to the regional bank’s customers was paramount.
At the same time, the North American bank was committed to moving quickly. Anticipated cost synergies and operational efficiencies helped shape the business strategy for the transaction, and leaders were focused on accelerating time to value.
There was little question about what needed to be done to enable a successful integration and why—but, given the scale and timeline, the “how” was crucial. If the North American bank wanted to hit the ground running on legal day one (LD1), it would need a strategic adviser and a delivery partner to help keep the wind at its back.
THE SOLVE
SEAMLESSLY
ONBOARD EMPLOYEES
AND CUSTOMERS,
WITHOUT MAKING WAVES
The Impact
The North American bank’s goal was a best-in-class integration that was completed on time and delivered meaningful synergies, with limited impact on customers. Deloitte’s strategic advice and delivery support enabled the bank to close the transaction and complete the majority of integration in just 20 months—and only seven months after legal close—while demonstrating high-quality delivery and stability.
The acquisition furthered the bank’s growth trajectory significantly. Nearly 10,000 new colleagues joined its organization from the regional bank and are receiving a new talent experience.
The North American bank also welcomed more than 1 million customers from the regional bank who are benefiting from new products and digital experiences, including access to expanded capital markets offerings, broader financial well-being and wealth management services, and a vast network of ATMs.
Preclose, the North American bank announced a multiyear community benefits plan to bring a substantial investment to underserved communities where the regional bank operated. This investment is anticipated to enable new business and job creation in those communities—and that’s an impact that’s intended to resonate.