The Board's Role for Credit Union Mergers
Project AdvisorBrown, William A.
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ClientFilene Institute for Credit Union Research
DescriptionThis project explored the role of the board of directors in decision-making during mergers and acquisitions. Mergers are a viable and wide-spread growth strategy for many credit unions. The study considered how the board engaged or disengaged in the process of working through issues related to mergers and acquisitions. Merger opportunities are strategic decision opportunities for organizations, and boards are critical to ensuring good decision-making.
The first step was to identify credit unions that had debated merger proposals. It was desirable to identify both credit unions that had completed the process as well as those that had withdrawn from the proposal. Based upon a sample of respondents who met the desired criteria, students conducted interviews with the senior executive and at least one board member.
The project interviewed 15-20 organizations (or about 30-40 executives and board members). Most of the interviews focused on decision-making processes, how opportunities and alternatives were or were not explored, and how member interests were considered. This allowed individuals to effectively describe the decision-making context and how board members were engaged. Decision quality was also considered, although it is very difficult to determine the benefits of a merger that did not take place. Consequently, we asked for perceptions of the decision quality, but quantifiable determination of benefits is probably not available in this research design. A filene research monograph was produced as a result of this project.
Brown, William A.; Filene Institute for Credit Union Research (2007). The Board's Role for Credit Union Mergers. Available electronically from