Mergers & Acquisitions

 View Only

  • 1.  Merging/Acquiring Non-Profit or Not for Profit Associations

    Posted 20 days ago

    "And now for something  completely different."  (Shout out to Monty Python fans). 

    1. In this discussion I am not discussing behemoths such as the Red Cross or American Bar Association.  They will have their own CM resources or can engage consultants if needed. The biggest hurdle for new consulting CM's is building a resume and client list.   Instead, I am looking at medium or tiny associations staffed by volunteers and operating with limited financial resources.  What are some reasons for this?

      1. Proximity
      2. Makes financial sense for survivability
      3. Increase volunteers
      4. Expand audience or membership
      5. Common goals

      As in any merger/acquisition, there is an endless list of possible motivations. 

      The first hurdle they face is that their leadership are volunteers.  Secondly, the leadership may only be a few individuals.  Third, there can be no financial pool from which to engage help.

      Most likely, managing this effort is being led by volunteers with no experience as Change Managers.  You need to sell the concept of merging to them. They may not even be aware that there is such a discipline. The ideal solution is to take this on as a pro-bono task. 

      As an example, there is in almost every community, some historical sites.  Some are completely independent. Some might be local government assets. Some might be supported by a non-profit group whose mission is to raise funds for the site if it is underfunded.  An efficiency, would be to merge these sites or supporting groups, increasing their pools of volunteers and members.

      Finances could either be merged or separate or some combination of the two if there are targeted donations.  I would recommend that a separate overarching leadership be created with members from each groups Boards and rotating the top officer. 

      You should advise that By-Laws be adjusted to be as uniform as possible to keep conflict to a minimum.  Where things can't be combined procedurally, move them to policies or SOP's.



    ------------------------------
    Frank Gorman, Former ACMP Board Member, Transformation Consultant
    ------------------------------


  • 2.  RE: Merging/Acquiring Non-Profit or Not for Profit Associations

    Posted 19 days ago

    Hi Frank, Great perspective-this really highlights an often-overlooked space for change management.

    I agree that smaller, volunteer-led associations face a very different reality than large institutions. The motivations for merging-sustainability, shared resources, and expanding reach-are clear, but the constraints (limited funding, small leadership teams, and lack of CM awareness) make execution especially challenging.

    Your point about "selling" the concept of change management is key. In these environments, it's not just about guiding the change it's about helping leaders understand why a structured approach matters in the first place. Very hard to "sell" at times. Leaders think we have a magic wand. 

    I also appreciate the callout on pro bono work. It's a win-win: organizations gain needed expertise, and emerging CM practitioners build experience and credibility. However, it appears from the job descriptions today they wanted seasoned people. I think this would take an open-minded organization to embrace.

    The governance suggestions (shared leadership, aligned by-laws, and flexibility through policies/SOPs) are practical and actionable exactly the kind of structure that can reduce friction during a merger.

    Really thoughtful take on a complex but high-impact opportunity space.



    ------------------------------
    Tammie Ray
    ------------------------------