Stronger Together
We have entered a period of increasing stress on nonprofit organizations and their financial viability. Because of this, nonprofit Boards of Directors are more frequently considering a merger or a combination through acquisition.
Why do nonprofit mergers/acquisitions make sense in today’s world?
Historically, mergers within the nonprofit sector have been driven by compatibility of mission and vision between two or more nonprofit organizations. More recently, creating a new merged organization that is much more efficient and therefore more compelling to sources of funding – both private and public -- has become a second and equally important reason to consider a merger. Combining staff, reducing redundancies, supporting a single administrative system and financial control rather than multiple systems makes enormous sense in times of scarce or declining resources.
Why should a nonprofit consider engaging external counsel in seeking a merger?
Nonprofit organizations – although many keep abreast of happenings within the sector – are usually firmly focused on their own operations and serving their clients/customers/partners. Outside firms that serve the nonprofit sector – advisors, accountants, counselors, consultants – usually have better insights into the status, approachability and viability of sector participants. In addition, external counsel can maintain confidentiality, guide negotiations and provide unbiased research and analysis.
How is Cincinnatus equipped to facilitate nonprofit mergers/acquisitions?
Cincinnatus offers hands-on experience in arranging, facilitating and successfully completing mergers between nonprofit clients. As with our other engagements, we don’t employ a set template to guide the process, but instead tailor our process to accommodate the individual needs, cultures, mission and vision of our clients. We also have established relationships with legal, financial, and communications resources to call on in support our work. In addition, Cincinnatus can conduct the entire process at a significantly lower expense that what is typically charged by investment bankers, accounting firms or law firms. We are highly skilled at facilitating the merger process, including negotiations, strategic combination and mission consolidation, while actively preserving the merging organizations’ service capabilities and our client’s commitment to their stakeholders and clients.
Why do nonprofit mergers/acquisitions make sense in today’s world?
Historically, mergers within the nonprofit sector have been driven by compatibility of mission and vision between two or more nonprofit organizations. More recently, creating a new merged organization that is much more efficient and therefore more compelling to sources of funding – both private and public -- has become a second and equally important reason to consider a merger. Combining staff, reducing redundancies, supporting a single administrative system and financial control rather than multiple systems makes enormous sense in times of scarce or declining resources.
Why should a nonprofit consider engaging external counsel in seeking a merger?
Nonprofit organizations – although many keep abreast of happenings within the sector – are usually firmly focused on their own operations and serving their clients/customers/partners. Outside firms that serve the nonprofit sector – advisors, accountants, counselors, consultants – usually have better insights into the status, approachability and viability of sector participants. In addition, external counsel can maintain confidentiality, guide negotiations and provide unbiased research and analysis.
How is Cincinnatus equipped to facilitate nonprofit mergers/acquisitions?
Cincinnatus offers hands-on experience in arranging, facilitating and successfully completing mergers between nonprofit clients. As with our other engagements, we don’t employ a set template to guide the process, but instead tailor our process to accommodate the individual needs, cultures, mission and vision of our clients. We also have established relationships with legal, financial, and communications resources to call on in support our work. In addition, Cincinnatus can conduct the entire process at a significantly lower expense that what is typically charged by investment bankers, accounting firms or law firms. We are highly skilled at facilitating the merger process, including negotiations, strategic combination and mission consolidation, while actively preserving the merging organizations’ service capabilities and our client’s commitment to their stakeholders and clients.
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