2 California Credit Unions Perform Business Merger
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Wednesday, January 30, 2013.
In many aspects of life people have discovered that there is power in numbers. Many times this can be the case in business, which is why many companies have decided to merge together. This enables companies which were once separate to combine resources in order to increase profit margins for everybody. This may have been the reasoning behind a recent business merger between two credit unions in California.
The merger consisted of one smaller credit union with 1,643 members merging into a larger credit union with 42,146 members. The smaller credit union is valued at a total net worth of $12 million, while the larger credit union is valued at $824 million. Both parties of the merger will now work together to better attain their business and financial goals
The merger was completed in mid-January when Bay Media Federal Credit Union merged into San Francisco Fire Credit Union. Both credit unions are based out of San Francisco and focus on serving the bay area market. The merger has enabled San Francisco Fire Credit Union to add its fourth location to its chain of credit union banks.
A business merger, such as this one which took place in California, should be done with care. The terms of the merger should be clearly communicated between all parties involved. The legal issues involved in such an endeavor will require significant research into business laws pertaining to the particular industry. In most cases it may be necessary to consult a legal professional who has experience in business mergers.
Source: Credit Union Times, "San Francisco, San Jose Credit Unions Merge," Peter Strozniak, Jan. 14, 2013