One Operating Model for Two Merged Broker-Dealers

The U.S. financial services landscape has seen significant consolidation in recent years, as firms aim to expand market share, diversify product offerings and optimize operational efficiency. Mergers and acquisitions in the brokerage sector are particularly complex, because of overlapping regulatory requirements, diverse product portfolios and the need to keep client services running without interruption.

Announcing one such transaction, the acquirer said it would expand the scale and breadth of its wealth management franchise and add a best-in-class direct-to-consumer digital channel, with enhanced capabilities for all its clients and financial advisors.

A leading global financial services firm faced the challenge of integration after acquiring a leading U.S. discount brokerage firm and deciding to merge the two broker-dealers.

The firm needed to bring two broker-dealers, with distinct operational systems, data structures and governance frameworks, into one integrated business while protecting client trust and regulatory compliance. To steer the effort, its merger integration office had set up a governance structure of six towers, 19 workstreams and various sub-workstreams. Within this structure, the firm needed to define the target operating model for the combined entity, including the data conversion of investment products across:

• Lending
• Capital Markets
• Managed Accounts and Solutions
• Mutual Funds
• Retirements

Sia was engaged to assist the integration effort by helping develop the target operating model for the combined broker-dealer. Working with the merger integration office, Sia's work included:

• Target operating model: supporting the definition of an operating model for the merged broker-dealer across the six towers and 19 workstreams.
• Data conversion: supporting the planning and validation of the data conversion of investment products across Lending, Capital Markets, Managed Accounts and Solutions, Mutual Funds, and Retirements.
• Integration governance: supporting coordination across workstreams and sub-workstreams to keep the integration on track and to identify and mitigate risks.

The engagement gave the integration program a target operating model to work toward, covering the conversion of the main investment product lines. It supported the firm's merger integration office in coordinating a complex effort across six towers and 19 workstreams.

By combining deep financial services expertise, structured program discipline and a clear view of the target state, Sia helps institutions turn complex mergers into integrated, scalable businesses.