Mergers, Acquisitions & Affiliations

The Challenge:

Over the last several decades, the willingness of government to fund many of the services that today’s nonprofits provide has diminished considerably. That challenge has meant that nonprofits must think differently if they are going to continue providing excellent services. Organizations have ramped up their development efforts, entered into for-profit ventures, partnered with businesses, and considered mergers, acquisitions and affiliations.

An affiliation at whatever level of intensity often provides an opportunity for lowering administrative costs and achieving economies of scale in many areas of service delivery. Small organizations can acquire a more sophisticated set of administrative services and get management backup for key people. Yet bringing two organizations together is always difficult and takes considerable effort.

Any organization considering an affiliation will need three types of assistance: legal, financial, and organizational. Loughran Consulting can provide the last service in collaboration with the other professionals involved. Possible services include:

• Assessing the organizational fit
• Developing an implementation plan
• Board training on mergers and acquisitions
• Programmatic due diligence
• Facilitation of negotiation sessions

“Meadows Homes was too small of an organization to be viable given decreased funding from the Department of Mental Retardation. We chose CHD as our new managing agency. Betsy worked with our Board, helping us to develop and implement a plan that provided enhanced benefits for staff and security for our clients.”

Nancy Donnelly former Executive Director of Meadows Homes