OP_MA · M&A PROCESS · FP&A-LED DILIGENCE
Commercial-bank M&A,run from theFP&A seat.

A six-gate process where finance owns the economic spine. Walk the whole arc, then open any red stage for its sub-tabs and diagram. Framework only: structures and real weights are shown; every dollar figure is a labeled placeholder until a live target is loaded.

OP_M0 · THE WHOLE PROCESS

The deal, gate by gate

Six gates, one economic spine. The gold lane is FP&A — the one function in every phase; the rest own their slice of each.

six-gate process · ordinal →
PHASE 00
Setup
Thesis, FP&A role, team, VDR protocol, model shell.
GATE · Proceed to VDR
PHASE 01
Target Assessment
Score fit; find the questions that most affect value.
GATE · Continue / pause / narrow
PHASE 02
Deep Diligence
Validate earnings, credit, deposits, compliance, tech, workforce, synergies.
GATE · Final-round focus
PHASE 03
Decision Package
Convert findings into bid / LOI support.
GATE · Bid / no-bid / reprice / defer
PHASE 04
Signing → Close
Application support, Day-1, value capture, conversion plan.
GATE · Close readiness
PHASE 05
Post-Close
Compare actual run-rate, spend, retention to the deal model.
GATE · Realize value / intervene
swimlane · function × phase · FP&A is the spine
deal flows through the gates
Function ▸ phase
0 · Setup
gate: proceed to VDR
1 · Target
gate: continue / pause / narrow
2 · Deep diligence
gate: final-round focus
3 · Decision
gate: bid / no-bid / reprice / defer
4 · Sign → close
gate: close readiness
5 · Post-close
gate: realize value / intervene
Corporate Dev / Strategy
Thesis & no-go
Fit & priorities
Bid strategy & terms
Signing
Finance / Valuation / FP&Aspine
Stand up model spine
Score & bridge
Normalize earnings, pro forma
Valuation & recommendation
Day-1 budget, run-rate
Variance vs. plan
Credit / Loan Portfolio
Credit quality read
Loan review & marks
Credit mark → model
Reserve / CECL plan
Portfolio monitoring
Deposit / Funding / Treasury
Deposit quality
Beta · mix · runoff
Funding assumptions
Liquidity Day-1
Deposit retention
Regulatory / Compliance
Reg path map
BSA/AML · CRA
Approval-timing risk
Application & approvals
Commitments tracking
Legal / Corporate / Tax
Contracts · tax
Purchase accounting
Definitive docs
HR / Workforce Durability
Workforce · comp
Retention economics
Retention design
Attrition tracking
Technology / Ops / Vendor
Systems · vendors
Integration cost
Conversion plan
Cutover · TSAs
Commercial / Revenue
Strategic fit
Revenue durability · NLE
Synergy / dis-synergy
Cross-sell plan
Revenue capture
Integration Mgmt Office
Integration plan
Close readiness
Value-capture office

How to read it: the top strip is the ordered process — six phases, each ending in a gate. The matrix is who owns what, when: each lane a workstream (colour + icon), each column a phase, each cell the deliverable that function owns. The gold lane is FP&A — active in every phase, the spine the others feed. Read down a column for everyone in a phase, across a row for one function’s arc.

OP_M1 · SETUP

Stand up the working groupgate · proceed to VDR review

Establish the thesis, the ten workstreams and owners, and the source protocol before review begins.

10 workstreams · decision question · phases active
workstream
decision question it answers
phases 0–5
owner
Corporate Dev / Strategy
Does the target improve franchise quality, market position, and growth runway?
012345
Corporate Development
Finance / Valuation / FP&A
Does the deal create acceptable EPS, TBV earnback, capital, and risk-adjusted return?
012345
FP&A & Corp Finance
Credit / Loan Portfolio
Are credit marks, allowance, and concentrations correctly reflected in value?
012345
Chief Credit
Deposit / Funding / Treasury
Are deposits stable, fairly priced, and accretive after runoff & CDI?
012345
Treasury
Regulatory / Compliance
Can the combination be approved & integrated without unacceptable supervisory risk?
012345
Regulatory affairs
Legal / Corporate / Tax
Is the structure, contract, and tax position sound?
012345
Legal & tax
HR / Workforce Durability
Can the people who preserve revenue be retained at a modeled cost?
012345
HR / Comp
Technology / Ops / Vendor
What is the conversion effort, dependency, and integration cost?
012345
Tech & Ops
Commercial / Revenue
Is revenue, customer, and segment profitability durable enough to support value?
012345
LOB / Strategy Fin
Integration Mgmt Office
Is the deal executable and is value capture governed post-close?
012345
Integration exec / IMO

Each workstream carries one decision question and an owner; the dotted strip shows which of the six phases it’s active in. FP&A (gold) is active in all six — it’s the spine.

OP_M1 · SOURCE DISCIPLINE

Label every figuregate · proceed to VDR review

Every number carries an input label so a reader never mistakes the template for a live bid model.

input-label pipeline · evidence → needed
Source-provided
Target VDR / data-room artifacts
Public-source
Regulatory filings, call reports
Model assumption
Synergy & phasing inputs needing sign-off
Placeholder
Template values pending the live target
User-needed
Fields the deal team must populate

Findings move from source-provided evidence toward user-needed inputs the deal team must populate. The label travels with the number through the model and the memo.

OP_M2 · TARGET ASSESSMENT

Score first, model secondgate · continue / pause / narrow

Convert early fit into diligence priorities with a weighted score — before valuation can anchor the team.

9 criteria · weighted · ranked
01
Financial profileQuality of earnings, normalized run-rate
16%
02
Strategic fitMarket, footprint, franchise fit
14%
03
Credit qualityMix, concentrations, marks, allowance
14%
04
Deposit qualityCore stability, beta, runoff, CDI
13%
05
Revenue durabilityRetention, NLE bridge, fee quality
10%
06
Synergy potentialEvidence-backed, timing, sign-off
10%
07
Integration executabilityTech, ops, vendor, people, Day-1
10%
08
Regulatory & compliance pathApproval, CRA, BSA/AML
8%
09
Workforce durabilityProducers, attrition, retention cost
5%
weights are real and sum to 100% · scores 0–5 (input: user-needed) · ranked high→low

Bars are sized by each criterion’s weight (real, summing to 100%). Scores are 0–5 and user-needed — weights rank what matters; scores come from the live target.

OP_M2 · THE GATE

What the score triggersgate · continue / pause / narrow

The weighted score maps to one of four diligence decisions — the Phase 1 gate.

score → decision
4.0-5.0
Continue — prioritizeStrong fit; advance to deep diligence with priority.
3.0-3.9
Continue with conditionsAdvance, but narrow to the value-driving questions.
2.0-2.9
Narrow or pauseMaterial concerns; reduce scope or pause for evidence.
<2.0
No-bid / deferFit or risk fails the thesis; defer or decline.

The score doesn’t decide the deal — it decides how much diligence, where. Green prioritizes; red defers before the team sinks cost into a poor-fit target.

OP_M3 · DEEP DILIGENCE

The bank-specific spinegate · final-round focus

Seven ordered tracks turn the data room into model-ready, source-labeled inputs.

ordered spine · 7 tracks
1
Regulatory path & public-interestdeal-gatingFiling reqs, competition, financial stability, managerial resources, safety & soundness, resolvability.
OCC / FDIC
2
Credit & loan portfoliodeal-gatingStratify, independent credit review, credit marks, CECL/provision, concentration risk.
BARRET / FDIC-APP
3
Deposit & funding qualityCore, NIB, uninsured, rate-sensitive, brokered, public & concentrated deposits; runoff & CDI.
FDIC-APP
4
Compliance & supervisory readinessExam history, CMS, BSA/AML, CRA, fair lending, UDAAP, complaints, remediation.
FDIC-CMS / OCC
5
Technology, operations & vendorsCore conversion & third-party risk from diligence through integration.
TPRM
6
FP&A financial modelTies assessment, normalized earnings, purchase accounting, synergies, EPS, TBV earnback, capital.
FRAMEWORK
7
Revenue & workforce durabilityCustomer & employee NLE, key-producer risk, incentive compatibility, revenue dis-synergy.
FRAMEWORK

Regulatory and credit gate the deal (red, “deal-gating”) — they can stop it on their own. Everything ties into the FP&A model (track 6) before durability is tested.

OP_M3 · CONVERGENCE

Every finding lands in the modelgate · final-round focus

Workstream findings converge into one integration model, which emits the decision artifacts.

converging inputs → model → outputs
workstream findings (in)
Credit review & marks
Deposit beta, runoff, CDI
Regulatory & compliance read
Tech / conversion cost
Revenue & workforce NLE
FP&A integration modelassessment → purchase accounting → pro forma → EPS / TBV / capital
decision artifacts (out)
Updated valuation & pro forma
Risk & opportunity register
Assumption log (source-labeled)
Final-round focus list

The model is the single convergence point — findings in, a source-labeled assumption log and risk register out. Nothing reaches the memo that isn’t in the model.

OP_M4 · DECISION PACKAGE

Bid / no-bid / reprice / defergate · bid / no-bid / reprice / defer

The package converts findings into a recommendation the IC or board can act on.

decision gate · four outcomes
Final memo + model outputsvaluation, pro forma, risk register
IC / Board
decision
Bid — submit LOI / offer
Reprice — adjust to evidence
Defer — resolve open items
No-bid — walk away

Reprice and defer are first-class outcomes, not failure — each ties to a specific evidence gap in the register. The colour reads the verdict: green go, amber adjust, grey wait, red walk.

OP_M4 · THE MEMO

From frame to recommendationgate · bid / no-bid / reprice / defer

Nineteen sections in four movements — frame, findings, economics, decision.

memo structure · 19 sections
Frame
  1. 01Executive summary
  2. 02Individuals involved
  3. 03Summary of work performed
  4. 04Strategic rationale
Findings
  1. 05Target assessment scorecard
  2. 06Target details
  3. 07Financial profile & normalized earnings
  4. 08Credit & loan portfolio
  5. 09Deposit & funding quality
  6. 10Revenue durability
  7. 11Workforce durability
  8. 12Segment profitability
Economics
  1. 13Purchase accounting & deal economics
  2. 14Synergies, value capture & integration costs
  3. 15Post-merger integration financial planning
Decision
  1. 16Regulatory, legal, compliance & operational risk
  2. 17Risk / opportunity register
  3. 18Outstanding final-round items
  4. 19Recommendation — bid / no-bid / reprice / defer

The memo mirrors the model: frame the deal, lay out findings by workstream, translate to economics, and close with the decision and the unresolved items.

OP_M4 · RISK REGISTER

Where the deal can breakgate · bid / no-bid / reprice / defer

Every open item placed on likelihood × impact, with the register’s real ratings.

likelihood × impact · 5 risks + 3 opportunities
impact →
L·H
M·H
R-002R-003R-004
H·H
R-001
L·M
O-003
M·M
R-005O-001O-002
H·M
L·L
M·L
H·L
lowlikelihood →high
risk opportunityratings are the register’s real probability × impact
R-001
Credit mark understated Credit
High × High
R-002
Deposit runoff > base case Deposit
Medium × High
R-003
Revenue dis-synergy (attrition) Commercial
Medium × High
R-004
Regulatory approval delay Regulatory
Medium × High
R-005
Core conversion cost overrun Technology
Medium × Medium
O-001
Treasury cross-sell Commercial
Medium × Medium
O-002
Vendor / systems consolidation Technology
Medium × Medium
O-003
Branch / occupancy rationalization Integration Mgmt Office
Low × Medium

The top-right cell — high × high — is where the deal breaks (the credit mark). Opportunities sit alongside risks so upside is governed, not assumed.

OP_M5 · VALUE CAPTURE

Six levers, evidence-backed rampsgate · close readiness

Three buckets, each lever with a realization ramp that the tracker holds owners to.

levers · Y1/Y2/Y3 realization
Cost synergy
Corporate overheadGL baseline, org chart, sign-off
Y1 50%
Y2 75%
Y3 100%
Technology / vendorVendor spend, contracts, deconversion
Y1 25%
Y2 60%
Y3 100%
OperationsProcess maps, staffing, conversion
Y1 50%
Y2 80%
Y3 100%
Facilities / branchBranch overlap, leases, customer impact
Y1 25%
Y2 60%
Y3 100%
Revenue synergy
Cross-sell / treasury / wealthCustomer & product penetration, RM book
Y1 25%
Y2 50%
Y3 75%
Revenue dis-synergy
Customer / banker attritionConcentration, RM mapping, retention plan
Y1 100%
Y2 100%
Y3 100%

Bars are the real realization ramps (% of run-rate). Dollar run-rate is a placeholder (evidence + owner sign-off required). Dis-synergy is modeled at 100% from Year 1 — attrition is immediate, savings phase in.

OP_M5 · INTEGRATION

Signing through the first yeargate · close readiness

A period × workstream plan — who does what, when, after signing.

timeline · workstream × period
Workstream ▸ period
Signing
Close
Day-1 (+30)
+60 / 90
Q1
Q2 – Q4
Regulatory
Application support
Approvals & conditions
Legal Day-1
Commitments
Reporting
Commitments tracking
Technology
Conversion plan
Vendor & TSA setup
Day-1 systems
Cutover prep
Core conversion
Decommission
HR
Retention design
Offers & comms
Day-1 onboarding
Stay tracking
Org integration
Attrition watch
Commercial
Synergy baseline
Owner map
Quick wins
Wave 1 capture
Wave 2 capture
Finance
Day-1 budget
Run-rate baseline
Actuals start
Variance v1
Re-forecast
Value report

FP&A sets the Day-1 budget and run-rate baseline at signing, so the moment actuals start there is a plan to measure them against.

OP_M6 · POST-CLOSE

Realize the value — or intervenegate · realize value / intervene

A monthly loop comparing actuals to the deal model, with the value-capture KPIs.

post-close cadence · actuals vs. deal model
Actualsrun-rate economics, spend, retention
Variance vs. deal modelsynergy capture, integration cost, attrition
Corrective actioncontinue · accelerate · intervene
Re-forecastupdated run-rate & value baseline
monthly cadence — the deal model is the operating baseline
Realized vs. baseline
synergy run-rate captured
Earnback
TBV earnback vs. plan
Durability
customer & banker retention
Spend
integration cost vs. budget

The deal model becomes the operating baseline. Variance isn’t reporting — it triggers action: continue, accelerate, or intervene to protect the thesis.

FP&A-led M&A diligence framework · target-agnostic — no deal figures, dollar values are placeholder slots · input labels: source-provided · public-source · model assumption · placeholder · user-needed.
AV—.—.— · FY2027 · 33.5°N 86.8°W