By Steve Dixon

Highlights from the AICD 2014 NFP Governance and Performance Study confirmed that “merger” is on the agenda for 30% of boards. Intuitively this feels right and reflects our current operating environment. So it’s probably worth talking much more about mergers & amalgamations.

And one of the things that most deserves more talk is how you go about identifying your likely amalgamee.…because the more I am involved in these transactions the greater the value I see in getting this question right so you don’t get it wrong.

Having a vision for your end game goes a long way towards helping find potential amalgamees. There are lots of challenges to consider – some generic, others need to be tailored to your Organisation – but if you understand the answers that best suit your Organisation then you are going to be far closer to identifying the right potential amalgamee. Usual suspects include:-

• Where does governance sit; who retains sovereignty?
• Who will be the boss? Our CEO, theirs, or do we go to market …
• Why talk amalgamation and what do we want to get out of it?
• What does the amalgamating process look like, how long will it take, how do we operate in the meantime and is it worth it?
• What happens if we get it wrong? What are the real consequences?
• What is the scenario if we stop talking amalgamation?
• How do the Organisations resource the transaction, integrate smoothly and optimise the benefits to all stakeholders?

Strategic Business Development is all about doing what needs to be done to know the right answers before you talk amalgamation.

Steve is a Cause & Effective Associate and a Strategic Business Development Expert. If you think Amalgamation may be on your NFP’s radar in 2015 it is well worth having a preliminary discussion with Steve. He can be contacted here