Credit Union Due Diligence is a key process during any combination of Credit Unions.
A combination of Credit Unions may be called either a merger, an acquisition or a transfer of engagements. No matter what it is called your Credit Union will be taking a risk. You will either be entrusting the other party with your assets or you will be taking on their liabilities. Many organisations have unfortunately acquired another entity only to discover unknown liabilities or inadequate provisions. This can put an organisation under undue financial stress. The Directors of the Credit Union have a duty to safeguard the assets of the Credit Union. Due Diligence is a review of the other party in a combination in order to establish its financial position. This can help identify unforeseen liabilities and establish the strength of the other Credit Union’s loan book. Due Diligence can therefore help the Board fulfill their duties and help safeguard the assets of the Credit Union.
We have helped a number of Credit Unions and other not for profit organisations by carrying out Due Diligence. We have also assisted them by advising on the accounting implications from the merger. These are not always straight forward and can have a major impact on PRA ratios.
For a confidential discussion on your needs then please get in contact.