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The many challenges of NFP Mergers & Acquisitions

If you are considering a merger or acquisition in the not-for-profit (NFP) sector, a new report details some of the many challenges you can expect to face along the way.

The joint research report by RMIT University and CPA Australia is based on data gained from 21 in-depth interviews with Australian NFP leaders who have been through mergers and acquisitions (M&As).

The researchers found that positive outcomes from M&As include improved economies of scale, wider service choice, better service quality and stronger organisational capacity.

On the downside, the three most common complaints were a loss of organisational identity, an increased workload and a cultural disconnect among staff.

The researchers pinpointed the quality of board and CEO leadership, clarity of the social mission and goals, a well-designed merger plan, proactive communication and stakeholder engagement as key factors that led to successful outcomes.

To view the full Governance Institute article, click here.

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