June 14, 2018
The challenge
Mergers and acquisitions between wealth management companies can provide parties with tremendous benefits. But also they can introduce greater complexity if key questions are not successfully answered. Our wealth manager client had acquired a financial planning business. The merger offered our client complementary services and access to a desirable customer list. However, the merger raised two important strategic questions. Firstly, how would a business-wide distribution strategy incorporate the acquired entity? And secondly, how would customer service be remodelled to guarantee consistency across all touchpoints?
Our approach
Working at the heart of the merged business leading the programme management function, we delivered a comprehensive implementation plan. This included facilities management, communication design and system and infrastructure migration.
Significant effort went into building an effective distribution strategy, modelling their customer proposition and optimising price points for target markets. We also redesigned their organisational structure to ensure both parties dovetailed effectively, while ensuring overall operational efficiency
Our impact
We had a fundamental impact upon the success of the merger. Our well-defined and substantial distribution strategy led our client to recruit a new Head of Distribution, somebody who understood both businesses and the new proposition. The appointment also illustrated the importance the client attached to our recommendations.
Most interestingly, nobody left the acquired company once our proposals and plans had been implemented. The client attached great significance to this, as it is commonplace for departures to occur during mergers, and staff often leave with valuable knowledge and vital assets. Given our client retained staff, it indicated how sensitively changes were communicated and how well our recommendations had been carried out.
Note: This case study was first published by Catalyst prior to the Davies merger