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Medium Profitability Merger & Acquisition Product Launch

Apogee Bank

#Financial Services
ProHub Comment

This is a well-structured case that guides candidates through a diagnosis-to-recommendation journey. It requires candidates to identify customer churn as the root cause of declining revenues using exhibits, then evaluate two strategic options (partnership vs. acquisition) using financial analysis. The case tests problem-solving, data interpretation, and business valuation skills.

Estimated Time 26 minutes
Difficulty Medium
Source ROSS
31 / 100
Our client Apogee bank, a regional bank with 700 branches in US Midwest, has seen a declining trend in revenues in the past 2 years. Blake Moran, the CEO of Apogee bank, hired you to identify the reasons for falling revenues and recommend ways to grow revenues.

Clarifying Information

  1. Apogee Bank offers checking and savings accounts, as well as personal, mortgage and auto loans.
  2. On the checking and savings accounts, Apogee bank makes money from service charges and account maintenance fees whereas it earns interests on loans.
  3. Apogee bank provides services through both brick-and-mortar branches and online applications.
Mock Interview
Interviewer

Our client Apogee bank, a regional bank with 700 branches in US Midwest, has seen a declining trend in revenues in the past 2 years. Blake Moran, the CEO of Apogee bank, hired you to identify the reasons for falling revenues and recommend ways to grow revenues.

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
Practicing...
Score coming soon
Practice this case with AI Mock Interview

Apogee Bank, a 700-branch regional bank in the US Midwest, is experiencing declining revenues. The case requires candidates to diagnose the issue (customer churn due to lack of wealth management products), analyze customer switching patterns, and recommend between two options to offer investment products: partnering with WizardTech or acquiring Finvest Inc. Financial analysis shows acquiring Finvest Inc. has a 6.2-year payback versus 7.5 years for the partnership.

Key Insights:

  1. Use constant ARPA with declining total revenue to deduce falling customer accounts rather than pricing issues
  2. Customer surveys are critical to understanding churn reasons—lack of digital investment products and wealth management services drove customers to digital banks
  3. M&A evaluation requires structured financial analysis comparing payback periods, recognizing cost synergies, and assessing profitability separately from acquisition costs
  4. Consider both financial (payback period) and strategic factors (integration risk, resource requirements, market positioning) in growth strategy recommendations