Nonprofit mergers and acquisitions : preconditions and factors critical to success

Abstract

Mergers and acquisitions have steadily emerged as an important topic within the nonprofit sector over the past twenty years. Using lessons and conceptual frameworks from the nonprofit and private sectors, this report explores preconditions conducive to M&A activity (including funding strain, subsector disaggregation, and executive director departure) as well as common challenges facing the organizations that undertake them. A case study of the imminent merger between two SAT preparatory nonprofits is presented to provide context for a successful M&A approach. This report concludes that organizations can benefit by simply exploring potential strategic partnerships, regardless of the end decision of whether or not to fully merge.