Strategic Merger Planning Facilitation

Can your Directors and Executive Team answer all of these five questions?

  1. What would our nonprofit Board do if we were approached next week about a merger possibility?
  2. What are the different structural options from collaboration and alliances, right through to mergers?
  3. How do we test a merger possibility against our vision?
  4. How do we safeguard the interests of the people and communities we serve?
  5. What are the three biggest areas of financial risk when assessing a nonprofit merger partner?''

 Considering an M&A deal is often the biggest and riskiest decision in the lifetime of an organisation. The entire process can appear unclear and fraught with difficulty.

If you are a smaller organisation, the thought of being ‘swallowed whole’ can be enough to ignore this strategy all together. But if used correctly, these strategies can be powerful, forward-thinking tools to leverage. 

Introducing the six step framework for mergers and acquisitions (M&A)

1. The right strategy

2. The right information

3. The right timing

4. The right price

5. The right conditions

6. The right integration

Learn about our approach to mergers and acquisitions and the six step framework we use to ensure a merger is successful. 

The Right Strategy 

—Assessing your strategic direction while identifying partners who could complement your mission, strategy and culture

—The twenty (or more) essential questions for a Board to agree upon before looking for M&A options

—Considering & assessing multiple options at once

The Right Information

—Initiating a term sheet for the 'due diligence' process, and subsequent negotiations

—Deciding whether external advisors or experts should be involved in the process

—Defining a potential integration plan, in advance of signing the deal

The Right Timing

—Determining when to initiate contact, or when to wait to be approached

—Determining your sense of urgency and judging their opposite party's sense of urgency

—Understanding the risks of not acting soon enough (short case example)

—Determining when to consult stakeholders like staff, volunteers, supporters, funders and communities

The Right Price

—Assessing the value of each opportunity to your organisation, even if there is no purchase price involved

—Assessing the purchase price if this is relevant

The Right Conditions

—Ensuring the deal reflects the best interests of the people and communities you serve

—Defining what is not negotiable for your organisation, as custodians of a nonprofit

—Can/should the deal survive stringent conditions to safeguard the interests of key stakeholders?

The Right Integration

—Planning strategies for integration as soon as you identify a potential partner (especially before signing the deal)

—The role for leadership from Board and executives, as well as others

—Twelve common pitfalls for nonprofits after merger deal has occurred

—Setting up an integration team and the integration plan