Making Core Vendors Pay for Your Merger



Mergers will continue to be a viable strategy as a way to grow — or, in some cases, just to survive. No matter which side of the transaction your franchise may be, Core and IT supplier contracts will impact the deal cost, accretive value, and shareholder benefit. Unfortunately for shareholders nationwide, Core and IT Suppliers will profit by hundreds of millions of dollars this year for services they will never provide as a result of onerous and one-sided termination, conversion and de-conversion expenses embedded unfairly in 2” inch thick contracts. A common mistake made by bank executives is to postpone negotiations with core IT suppliers until a merger has been announced, only to learn all their leverage has evaporated.  Restructuring contracts in advance of any M&A deal can make all the difference in profitability, franchise value and shareholder protection.

Many banks depend on their investment bankers or general counsel to handle these contracts only to learn they are either under-experienced in this type of deal-making or lack the financial incentive to be vested in changing the results. When banking executives proactively take control of their core relationships and become fully aware of their M&A opportunities, it can add up to monumental savings in operating costs and separation expenses while providing better accretive deal value.

In this session, Aaron Silva will outline the specific steps and strategies banks can follow to implement more profitable and merger-friendly agreements. The presentation will also dispel the notions that Core and IT service providers, such as Fiserv, FIS and Jack Henry, are unwilling to partner in banks’ successes, even if a merger could mean the cessation of their services. 


Aaron Silhouette


Mr. Silva is a recognized and respected "tell it like it is" industry thought leader and negotiations expert that will deliver entertaining, engaging and unique presentations to your audience. Routinely receiving 5 Star ratings, Silva is a professional speaker who has educated thousands of CEOs and Senior Execs leading institutions ranging from $150M to $20 Billion in assets. A lifelong entrepreneur and industry veteran of 30+ years, Aaron founded Paladin fs, LLC in 2007 and launched the Golden Contract Coalition (GCC) in 2016. Silva invented the Paladin Blue Book, leveling the playing field for bankers in pricing and contract negotiations against national legacy core, IT and emerging fintech suppliers. GCC will reach more than $1B in combined contract value across its membership, delivering the leverage necessary to influence adoption of a "Golden Contract" standard that all technology suppliers will ultimately adopt in order to conduct business and lower risk within our industry.