Bank - Mergers and AcquisitionsReport Details:Published:September 2012No. of Pages: 67Price: Single User License – US$3800•The report illustrates and evaluates issues including the estimated and actual synergies achieved via mergers and acquisitions in the global banking industry•The report also looks at the areas of unsuccessful mergers and acquisitions which not only destroys the managements reputations but also puts the merged entity into a difficult situation•This report also combines the insights of in-depth interviews with both M&A bankers and industry specialists, as well as the lessons from the case studies of M&A success and unique achievementExecutive summaryAs the global bank merger trend accelerates, it becomes increasingly important to evaluate issuesincluding the estimated and actual synergies achieved, the critical success factors in achievingthese results and the outlook for mergers and acquisitions (M&A), both in the context of the globalfinancial crisis and the long-term future. As banks become more experienced in M&As, they aredevoting more professional resources to these critical functions, demanding ownership of theplanned synergies, ensuring that a single chief executive officer (CEO) – not a federal leadership –executes the merger, and publishing the outcome of their planned synergies. Clear improvementshave been made in the target selection process, planning the merger, and post-merger integration.More complex deals, such as cross-border acquisitions, have been successfully executed andnow account for over half of total bank M&A transactions.Scope•The report provides historical profiles of bank M&As and overall trends•It includes examples in the form of case studies of M&A success and innovation in the banking industry•The report also discusses the model used to evaluate M&A opportunities and its evolution•It also deals with M&A planning structure, issues and efficacy of culture and impact on due diligence process•A portion of the report also examines some of the key developments in the mergers and acquisition process, and the contribution made by the private equity industryKey highlights
•The global financial crisis had an adverse impact on the pattern of M&As in the banking sector. Banks collapsed and governments have been compelled to provide financial stimulus to ensure stability.•On account of the financial crisis, most of the largest deals are based on state bail-outs, capital injections, loan guarantees and nationalizations.•M&As in the UK banking industry took a severe hit in 2012 on account of financial instability across Europe. M&As declined by around 63% in the first-quarter of 2012, to reach EUR3 billion (GBP2.4 billion), as compared with the same period last year.•European banking M&As declined by 68% from EUR5.9 billion in the first-quarter of 2011 to reach EUR1.9 billion in the first-quarter of 2012.•Out of around 7,500 banks, which exist in the US, only 168 banking M&As deals were announced in 2011.Reasons to buy•Gain insight into the various strategies adopted for mergers and acquisitions•Gain insight into the actual strategies employed by successful practitioners in identifying, preparing and executing bank M&As via various case studies•The report throws light on one of the most complex merger tasks – the integration of IT systems in bank mergers and the challenges facedGet your copy of this report @http://www.reportsnreports.com/reports/194732-bank-mergers-and-acquisitions.htmlMajor points covered in Table of Contents of this report includeTable Of Contents1 Executive Summary2 Introduction3 The Drivers of Bank M&As4 Historical Profile of Bank M&As4.1 Overall Trends5 The Merger Valuation Model5.1 The Evolution of the Model: From ‘Strategic Positioning’ to Shareholder Value5.2 Applying the Valuation Model5.2.1 Cost and revenue synergies5.2.2 Synergy validation5.2.3 Value transfer5.3 Tracking Actual M&A Results5.3.1 Academic studies of bank mergers
6 Planning and Executing the Merger/Acquisition6.1 Planning the M&A6.1.1 The M&A planning structure6.1.2 Refining and strengthening the selection process6.1.3 The issue of efficiency versus culture6.1.4 The impact of merger experience on the due diligence process6.2 Post-Merger Integration (PMI)6.2.1 Coordination and ownership of the merger synergies6.2.2 The role of private equity in the merger process6.2.3 Sustaining the merger momentum6.2.4 The issue of unfriendly takeovers7 Leadership, People Selection and Culture7.1 Leadership: Still Central to M&A Success7.1.1 Selecting and motivating the right people7.1.2 Culture: the battle for hearts and minds7.1.3 The generic solutions to cultural change7.2 Strong Leadership8 Managing IT Systems8.1 Why is This – The Case?8.2 The Views of IT Specialists, Consultants and Senior Bankers8.3 The New Challenges in IT Systems8.3.1 Merging two IT systems into one8.3.2 The advent of outsourcing and offshoring9 Case studies of M&A success and innovation9.1 The Break-Up of ABN AMRO: A Case Study With Fundamental Implications For Bank M&As9.1.1 Business profile and background9.1.2 Events in 20079.1.3 The RBS consortium’s acquisition plan9.1.4 Evaluation and outlook9.2 BAWAG PSK: A Key Bank Acquisition by Private Equity9.3 DnB NOR: A Successful Domestic Roll-out Strategy Creates a Dominant National Champion9.3.1 Business profile9.3.2 Merger strategy and execution9.3.3 Evaluation and outlook9.4 Erste bank: A Successful Acquirer in Central and Eastern Europe Pauses to Integrate itsOperating Model9.4.1 Business profile9.4.2 Merger strategy and execution
9.4.3 Evaluation and outlook9.5 GE money: The Largest Non-US Consumer Finance Company Targets Annual Growth andROE Exceeding 20%9.5.1 Business profile9.5.2 Merger strategy and execution9.5.3 Evaluation and outlook9.6 HSBC: The World’s Largest Financial Institution Focuses on Growth Markets WithInterconnectivity to Developed Markets9.6.1 Merger strategy and execution9.6.2 Evaluation and outlook9.7 JPMorgan Chase: 2004 Merger Creates Formidable Franchise With Broad Diversification andDisciplined Management9.7.1 Business profile9.7.2 Merger strategy and execution9.7.3 Evaluation and outlook9.8 The Santander Group: An Opportunistic and Successful Cross-Border Acquirer9.8.1 Business profile9.8.2 Merger strategy and execution9.8.3 The Abbey acquisition9.8.4 Participation in RBS syndicate9.8.5 Evaluation and outlook9.9 Standard Chartered Bank: M&A Supports a Timely Shift Back to its Emerging Market Roots9.9.1 Business profile9.9.2 Merger strategy and execution9.9.3 Evaluation and outlook9.1 UniCrediT: Italy’s Second-largest Bank Creates a Successful Multi-national Group by aDisciplined Approach to Domestic and Cross-border Acquisitions9.10.1 Business profile9.10.2 Merger strategy and execution9.10.3 Evaluation and outlook9.11 ICICI Bank Ltd: India’s Largest Private Industry Bank’s Merger With Bank of Rajasthan9.11.1 Business profile9.11.2 Merger strategy and execution9.11.3 Evaluation and outlook9.12 Bank of America’s Acquisition of Merril Lynch – A Historical Event in the Realm of FinancialCrisis9.12.1 Business profile9.12.2 Merger strategy and execution9.12.3 Evaluation and outlook9.13 Caja Madrid, Bancaja merger forms Spains biggest bank9.13.1 Business profile9.13.2 Merger strategy and execution
9.13.3 Evaluation and outlook10 The Future of Bank M&As10.1 Introduction10.2 Divergent Trends in Bank Regulation10.3 The Future Role of Private Equity10.4 The Linked Issues of Size and Complexity10.5 Leadership: The Missing Link10.6 Managing a Portfolio of Different Businesses: The Issues of Diversity and Value-added10.7 The Reality of IT Cost Savings in Cross-border Banking10.8 Management’s Dilemma: Reconciling Investor Demands With the Valuation Model11 Appendix11.1 List of Interviews11.1.1 Banks11.1.2 Analysts, regulators and consultants11.2 DisclaimerList Of TablesTable 1: Top-20 Largest Banking Deals in 2008 Excluding Nationalization and State Bail-OutsTable 2: Key Banking Deals by Deal Value: 19992011Table 3: Key Technology Contract wins and Fin-Tech M&AsTable 4: Anticipated Returns to Buyers of ABN AMRO BusinessesTable 5: Mergers by ICICI Bank Ltd in IndiaList Of FiguresFigure 1 Most Common Challenges Affecting Synergy RealizationFigure 2: Sample Task Force Structure for Key Bank IntegrationFigure 3: Sample integration planning structureFigure 4: Past and Present Approach to Bank Merger IntegrationFigure 5: M&A activity which created DnB NORFigure 6: New Erste Bank StructureFigure 7: Shaping HSBC’s Business – A SummaryFigure 8: Net Income by Line of Business at JPMorgan Chase in 2007Figure 9: Track Record of Santander Cost Base ReductionFigure 10: Potential size of income pools available to Standard CharteredFigure 11: UniCredit’s trade-offs between centralization and the multi-local modelContact: firstname.lastname@example.org for more information.