Mergers, Acquisitions and Strategic Alliances
Fifty per cent of Directors of not-for-profit social services said
in the past year they have discussed the possibility of a merger. About
a quarter of these organisations are expecting a merger to happen
within the next two years.
(NFP Governance & Performance Survey, 2014. Australian Institute of Company Directors - AICD)
About this page.
The following lists are articles, resources and links
to websites that may be of interest. Click on the heading to open link.WACOSS will keep updating this page as
more resources become available. If you have any suggestions, please
send to firstname.lastname@example.org.
We are keen to add a wide range of views including more articles on why
not to merge and perspectives from smaller organisations.
Why mergers, acquisitions and strategic alliances?
Currently, there are a number of State and Commonwealth
government reforms driving significant changes for not for profit
community service organisations. The most recent is the Commonwealth
Government’s Productivity Commission Report where there is a move
towards an individualised funding model and the State Government’s
Delivery of Community Sector Partnership Policy (DCSP) procurement
reforms which is moving the community services sector into a competitive
tendering process. In order for community services organisations to
have future viability and sustainability, mergers, acquisition and/or a
strategic alliances, may well be a necessary way forward.
to a survey of community services sector organisations around
Australia, many community service organisations have merged, or are
seriously considering or preparing for a merger (AICD, 2014). Despite
this, there are still many community service organisations (especially
small and medium sized ones) who have their 'head in the sand' about
this topic, or who have significant and understandable reservations and
However, the wisdom by many experts and experienced
leaders in the sector is that it is vital that community services
organisations have seriously considered merging as a strategic option;
are prepared for a request to merge or ready to ask another to merger;
and are clear why merging or not merging, is in the best interest of
their organisation and the community and people they serve. There are
many compelling reasons why merging may not be a good idea, however, it
is always important that Boards have actually discussed the matter.
Alternatively a Strategic Alliance (where there is no significant
restructure and relatively lower risk), should also be considered as a
way of meeting strategic objectives and testing possibilities for a
merger with another organisation with like-minded mission and values.
and other forms of restructuring can be complex, daunting and at times
risky. However there are many examples of successful mergers in WA,
Australia and Internationally, whose union has made a significant and
exciting difference to their mission.
It is therefore vital that
both leaders and board members deepen their knowledge and understanding
of what is involved in mergers or restructuring; identify the risks and
benefits; and are fully aware of what is involved in operationalising a
merger successfully, so that the planning is adequate, well resourced
In December 2014, WACOSS began
discussions and knowledge sharing on this topic with its Breakfast Forum
and Workshop (see below for more information). WACOSS intends to
continue to offer more learning opportunities and conversations on this
topic in 2015. So please come back to this page, or keep an eye on our
WACOSS Training & Events for coming scheduled events on this topic.
A Workshop for Boards on M&A
WACOSS offers a 3 hour
In-house workshop on mergers and acquisitions and strategic alliances.
This can be delivered at a time and place suitable for your Board. This
workshop provides an excellent opportunity to get your board thinking
strategically about the options. The session is delivered by an
experienced consultant. Many boards have already found this session to
be extremely valuable. To ask for a quote or to discuss your needs, please contact WACOSS on 9420 7222 or email email@example.com.
Australian Resources & Links
Driving Trends: Breakfast Forum & Workshop on Mergers, Acquisition and Strategic Alliances, Presentations
Perth, 3rd December 2014. –A partnership between WACOSS and Jackson McDonald.
Mergers, Alliances and Related Strategies – A Winston Churchill Study
Written by Chris Hall, 2009
Uniting The Mission – The story of the merger and creation of UnitingCare West
Book by Marilyn Beresford - to purchase book click here.
NFP Mergers, Amalgamations & Change Management – Current State of NFP World - April 15, 2014
Michael Goldsworthy, Australian Strategic Services, Australia.
NFP Governance and Performance Study – 2014, Aus
(See Chapter 15: Collaboration and Mergers on the Agenda)
Australian Institute of Company Directors. AICD
Critical Issues for NFP Directors 2015 and Beyond
Based on the NFP Governance and Performance Study - Sept 2014
International Resources & Links
How to merge or link charities - tool kit
Charity Commission, United Kingdom, website, 2014
Includes advantages & limitations, checklists, case study’s
The Good Merger Guide – For charities and other civil society organisations, 2012, UK What place for mergers between charities? – UK, 2009
By Prospectus and East Side
By New Philanthropy Capital (NPC) Nonprofit M&A: More Than a Tool for Tough Times – Feb 2009, USA
Merging Wisely article
Stanford Social Innovation Review website page
By David La Pana, No: 8, 2010
By Alexander Cortez, William Foster and Katie Smith Milway.
Mergers & Collaborations –Blog Posts & Case Studies - USA
The Bridgespan Group – Nonprofit group – Collaborating to Accelerate Social Impact