At a recent meeting of Boston nonprofits, a community leader announced that a committee of concerned citizens was seeking to help multiple nonprofits to think about mergers.
Until recently, small social agencies successfully provided programs with a combination of state funds, private donations and foundation grants. Today, state contracts are rapidly shrinking, private donors have less capacity, and foundations cannot fill the gaps.
The community leader said his foremost concern in these times is constituents, not that organizational boundaries be preserved. If you are considering a merger, your first question should be: “Will our clients be better served by a merger?” The next question is “What will make the merger process work?”
In our experience with merger projects, Management Consulting Services (MCS) has learned a number of lessons. We would like to share our lessons with you if you are looking for a merger partner.
Important Features in a Merger Partner
In the past, organizations seeking a merger partner would have the luxury of a long courtship period, followed by lengthy negotiations leading to a prolonged implementation period. Today, the new partners are likely to be on a schedule more like speed dating. They must select the right partner and move quickly to realize the expected benefits.
