When Does Our Project Need To Start?
Based on our experience to date, we estimate that a project takes approximately 34 weeks to complete once initial discussions have been held and agreement to proceed has been achieved. This timeline can be shortened or lengthened depending on the strength of the project management involved and the level of assistance sought from ReBo. However, if a project is not complete by the financial year end (30th September) then the credit unions involved will have to complete their annual audit and hold AGMs in advance of the merger projects being completed. Therefore this can lead to an additional delay of 2-3 months.
As outlined in Section 43 of the Credit Union and Co-Operation with Overseas Regulators Act 2012, ReBo will have a finite life and is expected to carry out its work by the end of 2015.
There are 7 main stages that a ReBo project goes through once two or more credit unions have agreed to pursue a restructuring proposal and signed non-disclosure agreements.
1. Fact Find
The fact-find exercise is intended to satisfy each credit union, prima facie, that there are no insurmountable impediments to the proposed merger. This step occurs before the formal, independent, due diligence process.
2. High Level Business Case (HLBC)
This is a summary of all the key financial and strategic information associated with the merger. It should include general information about the credit unions involved, reasons for merging, key benefits of the merger, financial analysis, a cost budget and a summary & conclusion in support of the proposal.
3. Due Diligence Phase 1
Phase 1 of Due Diligence is the Asset Review phase.
The areas of interest are:
- Fixed Assets
4. Due Diligence Phase 2
The areas of interest for Phase 2 are:
- Financial Audit
5. Detailed Business Case & Integration Plan
The Detailed Business Case provides a detailed analysis of the merged entity, including proposed governance structure, SWOT analysis, key performance indicators, financial projections with associated assumptions and a business plan supporting the achievement of these projections.
The Integration Plan addresses all practical issues with respect to the completion of the merger transaction, such as IT integration, HR matters, operation streamlining, stakeholder communication strategy, legal requirements, etc.
Once the 5 stages above have been completed the proposal is ready for submission for approval.
This is done in three steps:
- Step 1: ReBo Sub-Committee
- Step 2: ReBo Board
- Step 3: Central Bank
Once Central Bank approval has been given the project is ready to proceed to Implementation. This is done either by Board Resolution (voted on by the Board Members of the credit unions) or by Special Resolution (voted on by Members of the credit unions).
The steps involved in the implementation are:
- Credit unions issue Section 130 Packs
- Credit unions apply to Central Bank for confirmation of the Transfer of Engagements
- Credit unions place notice in national press
- 21 day notice period for members’ comments and credit unions responses to same
- Credit unions provide confirmation of Operational Readiness to Central Bank
- Central Bank issue confirmation and specify effective date
- Credit unions issue certificate confirming all property has been transferred to transferee credit union
- Central Bank cancel registration of transferor credit union