Merger Story

Dac4cast in a Merger Scenario

When two financial institutions began discussing the prospect of merging, Dacono was brought in early to assist in the evaluation process along with its Dac4cast STEP Business Model. Dacono and its Dac4cast system supported management and the Board through all the stages of the merger.

Evaluation
Dac4cast system was implemented in both institutions, testing the quality of the information in both organisations and to build forecasts for both organisations on the same basis. The process enabled the management and board to be able to assess the two institutions on comparable terms.

Through Dac4cast features, Dac4cast produced a consolidated report of the 3 institutions out to 3 years including Capital Adequacy, Liquidity, Profitability, Asset growth, etc. Through the scenario facilities, the institutions were in a position to be able to test multiple scenarios, such as branch closures, different fee structures, potential loss of members, etc.

Merging
Once the due diligence process had been completed and the merger went ahead Dacono was able to assist with the merger process. As the two institutions were not able to merger their systems for 3 months, the Dac4cast system was able to produce conolidated management reporting and regulatory returns.

Conclusion
Dacono and Dac4cast help management and directors peace of mind and confidence in the merger process. Most importantly Dac4cast provided demonstratable due diligence in the decision making process meeting the expectations of Governance.