Retirements of CEOs and board members may be a factor. By Charlene Komar Storey This is bonus from an upcoming story about merger finance for board members in the February 2016 issue of CUES' Credit Union Management magazine. 
While financial problems may move credit unions to merge into a larger partner, that’s not the only reason the movement is seeing so many new combinations. Other common merger motivations are technological advancement and consumer expectations, says Jim Kasch, founder of Canidae Consulting. Mergers also come about to help institutions more successfully compete in the marketplace and comply with regulations. Another important factor Kasch cites is that a large number of CEOs and board leaders are retiring. Rather than replacing those leaders, some credit unions look to merge. Among smaller credit unions, in particular, there’s a concern about being able to compete for top-quality people, Kasch says. It has become harder and harder to attract directors, as the national volunteer problem escalates. And being a credit union director is challenging. “Directors I talk to who are 30 to 45 years old say it’s harder” than other types of volunteer roles they could take on, Kasch points out, saying that the need for increased understanding of finance and compliance are two areas often cited. Charlene Komar Storey is a veteran credit union writer based in New Jersey. To merge or not, as well as best practices if you do, will be topics of discussion at the new Mergers & Acquisitions Institute this June in Chicago.
