Bank Mergers and Acquisitions

Content

• Chapter 1. The drivers of bank mergers and acquisitions
• Chapter 2. Historical profile of bank mergers and acquisitions
• Chapter 3. The merger valuation model
  • The evolution of the model: from strategic positioning' to shareholder value
  • Applying the valuation model
  • Cost and revenue synergies
  • Value transfer
  • The Sal. Oppenheim study
  • Tracking actual merger and acquisition results
  • The Deutsche Bank outcome study
  • Academic studies of bank mergers
• Chapter 4. Planning and executing the merger/acquisition
  • Planning the M&A
  • The M&A planning structure
  • Refining and strengthening the selection process
  • Efficiency versus culture: the demise of the merger of equals (MOE) and the federal structure
  • The impact of merger experience on the due diligence process
  • Post-merger integration (PMI)
  • Coordination and ownership of the merger synergies
  • The role of private equity in the merger process
  • Sustaining the merger momentum
  • The issue of unfriendly takeovers
• Chapter 5. Leadership, people selection and culture
  • Leadership: still central to M&A success
  • The issue of collective leadership
  • Unresolved issues
  • Typical views of interviewees on today's leadership challenges
  • Selecting and motivating the right people
  • Culture: the battle for hearts and minds
  • The generic solutions to cultural change
  • Summing it up: strong leadership but also the soft stuff'
• Chapter 6. Managing IT systems integration in a merger
  • The views of IT specialists, consultants and senior bankers in the 2000 interview series
  • The new challenges in IT systems M&A
  • The advent of outsourcing and offshoring
  • IT issues in cross-border mergers
  • IT systems integration for risk management
• Chapter 7. The regional profile of bank M&A
  • United States of America
  • Unique role of community and de novo banks
  • Perceptions of shareholder value drive US bank M&A
  • The central role of regulation
  • The US as a source of global banking innovation
  • Limited penetration by foreign banks
  • Asia-Pacific region
  • The attractiveness of the local market
  • The imbalance between foreign and domestic interest in cross-border M&A
  • A different approach to M&A integration: the Asian way'
  • Price competition for attractive M&A candidates
  • M&A in Japan
  • The case study of Mitsubishi UFJ Banking Group (MUFG)
  • European Union
  • The role of regulation
  • The birth of bancassurance
  • The death of strategic alliances
  • Limited M&A penetration by non-EU banks in the traditional banking sector
  • Relative M&A success of EU banks in selected overseas markets
  • Significant differences in bank concentration across the EU have remained despite major M&A activity
  • Central and Eastern Europe: Europe's own emerging markets!
• Chapter 8. Case studies of M&A success and innovation
  • The break-up of ABN AMRO: a case study with fundamental implications for bank M&A
  • Business profile and background
  • Events in 2007
  • The RBS Consortium's acquisition plan
  • BAWAG PSK: a major bank acquisition by private equity
  • DnB NOR: a successful domestic roll-out strategy creates a dominant national champion
  • Erste bank: a successful acquirer in Central and Eastern Europe pauses to integrate its operating model
  • GE money: the largest non-US consumer finance company targets annual growth and ROE exceeding 20%
  • HSBC: the world's largest financial institution focuses on growth markets with interconnectivity to developed markets
  • JPMorgan Chase: 2004 merger creates formidable franchise with broad diversification and disciplined management
  • The Santander Group: an aggressive, opportunistic and successful cross-border acquirer
  • Standard Chartered Bank: M&A supports a timely shift back to its emerging market roots
  • UniCrediT: Italy's second largest bank creates a successful multi-national group by a disciplined approach to domestic and cross-border acquisitions
• Chapter 9. Merger outcomes: what has been the track record?
  • Overall the record of bank M&A is mixed, both in aggregate and for individual banks
  • Banks have become more adept at estimating and achieving cost savings as well as managing the due diligence process
  • Yet uncertainties and risks in bank M&A are still present
  • Some strategic lessons have at least been learnt in retrospect!
  • No surprises' for investors is a key lesson
  • There is little evidence of real progress by global banks in achieving the nirvana of a single IT system which can efficiently be installed in new markets
  • The losses from delaying or extending the merger process continue to be substantial
  • The example of the CEE is a rare instance of foreign banks effectively taking over the banking system of a developing region
• Chapter 10. The future of bank M&A
  • The forecasts of the interviewees
  • Divergent trends in bank regulation
  • The author's own views
  • Appendix A. List of interviews
  • Banks, analysts, regulators, consultants and financial institutions
  • Appendix B. Bibliography