Mergers, acquisitions and more specifically, strategic partnerships are taking place in a challenging nonprofit landscape with increasing frequency. This is a result of myriad pressures facing nonprofits as a result of a pandemic that continues to impact the global economy. Such challenges leading to the need for partnerships include but not limited to liquidity and resource challenges, operational efficiency, sustainability and resiliency and ultimately achievement of mission and impact.
As we examine the options available to nonprofit organizations, there are three critical pillars of a successful strategic partnership to focus on: synergy, resources and culture. When considering a form of a strategic partnership, it is important that organizations evaluate and ask themselves the following:
What synergies can we create with existing operations that would have the greatest impact?
Would the partnership create the resources, infrastructure, experience, and capacity necessary to succeed?
What important cultural and mission centric balance is needed in order to thrive?
Identify good practices for a successful merger, acquisition or strategic alignment.
Determine the advantages and disadvantages of mergers and acquisitions.
Assess the financial feasibility of a merger or acquisition.
Co-leader, National managing partner, Nonprofit & Education Industry practice,
BDO USA, LLP