Technical guidance to Ugandan bank in local merger

Mergers and acquisitions can be murky affairs that fail to translate to the expected growth in shareholders returns. When occurring in banks, there is an added risk of any disruption causing significant negative impacts on both individuals and businesses. Key to organisations navigating the challenges of these transitions is ensuring they have a practical and comprehensive strategy.

Genesis Analytics partnered with a large Ugandan bank to provide strategic and technical guidance following the bank’s acquisition of one of its local competitors. The team began by forming a better understanding of the new customer base to help the bank determine what its winning aspirations would be. The Genesis team was able to leverage its established experience in the market to offer invaluable recommendations around which segments the bank should pursue.

Next, we carried out a high-level analysis of the bank’s capabilities in relation to technology, sales and customer excellence, as well as the operating model. This was done to establish how the bank would achieve its determined aspirations. Comparisons were drawn with international best practices to highlight the gaps that management would need to fill.

Having settled on a strategic direction, the Genesis team, in conjunction with the bank’s finance team, developed a financial model to quantify the likely financial outcome of the acquisition. Being objective and having worked with numerous banks across the region, we were able to provide ambitious yet realistic estimates for the bank to aspire to.

Genesis presented these findings to the board of directors and the executive committee in-country which helped the management identify the areas it needed to focus on, thus guiding the bank towards meeting its winning aspirations.