Neighbourhood Credit Union: To Merge or Not to Merge
Measuring the Co-operative Difference Research Network
This teaching case is based on a small credit union, Neighbourhood Credit Union, that was evaluating a possible merger with another larger credit union, Pleasantview. The CEO, Ben Chang, and Neighbourhood’s Board of Directors (Board) were interested in a merger that would enhance member benefits via improved technology, innovative delivery channels and a more robust financial planning and wealth management capability. The initial due diligence review was complete and the memorandum of understanding signed. Chang, however, was becoming increasingly concerned about the lack of strategic fit between Neighbourhood and Pleasantview. Chang was scheduled to meet with the Board in four days. He needed a recommendation that would address the current merger situation, as well as provide other options for Neighbourhood.