Therefore, when the right opportunity does appear, it is vital to ensure that the integration creates value. Our experience on multiple private banking deals shows that while selecting the right partner is important, running a fast and effective integration tailored to the needs of the private bank is the key to creating value.
Recent changes in the Private Banking industry have forced organisations to look for ways to address underlying profitability issues. Consolidation is an obvious solution to reducing costs. However, despite an abundance of acquisition targets, the M&A environment in Private Banking is particularly tough – the attraction of low prices is often outweighed by questions around the quality of the assets and the risks involved.