Capital Market Partners’ M&A Services

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M&A activity is stirring in the Danish financial sector. Not least, Nykredit’s bid for Spar Nord has sparked further interest in consolidation discussions among banks. We also see this trend in the pension and insurance sectors.

For many years, a recurring theme has been that 65-70% of acquisitions and integrations fail to achieve the objectives set for the acquisition or consolidation.

For financial institutions with acquisition ambitions, thorough preparation is crucial. This can be achieved through the following measures:

  • Post-Mortem Analysis · Integration Playbook
  • Training of the Integration Team
  • Due Diligence Process

Post-Mortem Analysis is intended for those who have previously made acquisitions. A review of experiences from past acquisitions with key figures from the process can uncover important lessons for future deals. The analysis should highlight key takeaways such as what went well, what should be done differently next time, whether the integration estimate in the price matched the actual costs afterward, whether synergies were realized, whether key personnel were retained, whether goals were achieved, whether integration efforts hindered daily business operations, and whether due diligence was sufficient. These insights should be integrated into subsequent preparations, including planning, tools, and training.

Integration Playbook is aimed at those with acquisition ambitions. The Integration Playbook provides a common reference for the integration process and a step-by-step approach to preparing and executing the integration of the acquired financial institution, covering key clarifications, organization, activities, etc. Additionally, essential tools can be prepared and developed.

With a Post-Mortem Analysis and Integration Playbook in hand, key individuals in the integration management team can be briefed and trained. Workshops for selected key personnel involved in the overall process, particularly leadership, will be a crucial factor.

A review of due diligence preparations is also relevant. In addition to classical financial, tax, legal, operational, and commercial due diligence, a change/integration perspective on due diligence should be considered. This ensures that opportunities and challenges related to integration are addressed even before the deal is finalized.

Over the past years, CMP has increasingly been involved in M&A processes in the financial sector, both in the preparatory phase and in connection with integration or carve-out after deal completion.