Nonprofit Mergers and Alliances. 2nd Edition

  • ID: 1280127
  • Book
  • Region: Global
  • 288 Pages
  • John Wiley and Sons Ltd
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Praise for NONPROFIT MERGERS & ALLIANCES

SECOND EDITION

"Having just gone through a nationwide restructuring of our entire council network— 280 mergers in a little over three years—we can affirm that Tom McLaughlin is right on target. His clear, practical, thorough guidebook would be of significant value to any nonprofit considering a merger. Tom challenges our sector to dig deeper into more effective ways to deliver our mission, and he gives us the tools to make that happen."
—Kathy Cloninger, Chief Executive Officer, Girl Scouts of the USA

"Tom McLaughlin′s book Nonprofit Mergers and Alliances, Second Edition is a must–read for all nonprofit executive and volunteer board leaders. It is a beacon of common sense and hope in the nonprofit sea of ineffective insanity, limited resources, and obstacles that challenge scalable and sustainable mission execution. Tom provides both the knowledge necessary for quality analysis and assessment of nonprofit mergers and alliances as well as the successful tools for implementation based on his successful experience in the field."
—T. Charles Pierson, Big Brother, President and CEO, Big Brothers Big Sisters of North Texas

Everything you need to know about mergers and alliances in the nonprofit arena

Using real–world examples and case studies, easy–to–use checklists, and analytical tables, Nonprofit Mergers and Alliances, Second Edition offers clear, practical, step–by–step guidance through the merger or alliance process, from preliminary considerations to actual implementation. The book offers insightful commentary and a real–world orientation for nonprofit leaders contemplating some form of collaboration.

Take a look inside for concrete guidance on:

  • Understanding how to evaluate your own organization
  • Choosing the right partner
  • Deciding what form of collaboration to pursue
  • Why nonprofit mergers are fundamentally different from corporate mergers

Based on the author′s extensive work in nonprofit collaborations, Nonprofit Mergers and Alliances, Second Edition equips you with the tools to navigate the still new field of nonprofit merger and alliance development, as well as to effectively manage the new entities created.

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Acknowledgments.

Introduction.

Chapter 1 A Valid Strategic Option for the Future.

Government′s Retreat.

Chapter 2 The Freestanding Nonprofit and Other Rugged Individualists.

Why Nonprofit Services Are Fragmented: A Story.

A Nonprofit′s Economics Are Part of Its Strategy.

Chapter 3 Logic of Integrated Service Delivery.

Applications of Integrated Service Delivery.

Elements of Integration.

Chapter 4 Deciding to Collaborate.

Rescue Mergers.

Merger from Strength.

Deciding to Collaborate as a Function of Larger Forces.

Chapter 5 Preserving Identity.

Nonphysical Components of Organizational Identity.

What Is Not Part of "Identity"—and What Is.

Chapter 6 The Role of Funders.

What Funders Can Do.

Funding Collaborations.

Models for Funding Collaborations.

Quality Assurance through Foundations.

Chapter 7 C.O.R.E. Continuum of Collaboration.

Our Model.

Applying the C.O.R.E.

Chapter 8 Economic–Level Collaboration.

Sharing Information.

Bidding Jointly

Joint Purchasing.

Chapter 9 Responsibility–Level Collaboration.

"Circuit Riders".

High–Integration Collaboration Models.

A Cautionary Note.

Chapter 10 Operations–Level Collaboration.

Shared Training.

Joint Programming.

Joint Quality Standards.

Chapter 11 Corporate–Level Collaboration: Merger.

Authority Is Concentrated.

Offi cial Start Dates May Be Anticlimactic.

What It Means to Merge.

The Essence of a Nonprofit Merger.

Advantages and Disadvantages of a Merger.

Chapter 12 Models of Collaboration: Merger by Management Company.

Structure.

Control and Governance.

Advantages of a Management Company.

Disadvantages of a Management Company.

Faulty Integration in a Management Company Model.

Chapter 13 Models of Collaboration: Alliances.

Structure.

Chapter 14 Models of Collaboration: Partnerships with and between Nonprofits.

Structure.

Control and Governance.

Special Considerations.

Partnerships with For–Profit Companies.

Limited Liability Companies.

Chapter 15 Merger Myths.

We Will Save Administrative Costs.

There Will Be Massive Job Cuts.

We Will Lose Our Identity.

Let Us Figure Out the Structure First.

Shhh.

Only Failing Organizations Merge.

Increase in Mergers Is a Product of an Economic Downturn.

Chapter 16 First Steps.

Geographic Proximity.

Absence of a Permanent CEO.

Nonoverlapping Markets.

Industrializers and Prototypers.

Compatibility of Services.

Special Assets.

Role of Culture.

Role of Class.

Quick Culture Check.

Building Trust.

Seeds of Trust: Disclosure, Consultation, and Collaboration.

Chapter 17 Merger or Alliance? How to Decide.

Corporate Control.

Chapter 18 First Phase of a Merger: Feasibility Assessment.

Informal Phase of a Collaboration.

Role of Consultants.

Form a Collaboration Committee.

Why Due Diligence?

What Is a Due Diligence Investigation?

Governance.

Finances.

Assets.

Liabilities and Obligations.

Some Financial Red Flags.

Valuations.

Carrying Out the Valuation.

Pro Forma Financials, Including Cash Flows.

Regulatory Filings.

Human Resources Information.

Assess the Feasibility.

Chapter 19 Second Phase of a Merger: Implementation Planning.

Form Subcommittees of the Collaboration Committee.

Internal Communication.

External Communication.

Some Sample Collaboration Committee Structures.

Who Will Be the Boss?

Some Tools to Accomplish a Leadership Transition.

Once the Selection Is Made . . ..

Creating the Formal Agreement.

Merger Announcement (Create a Splash).

Chapter 20 Third Phase of a Merger: Integration.

Time Required for Integration.

Common Sources of Resistance.

Chapter 21 The Seven Stages of Alliance Development.

Categories of Alliances.

Seven Tasks of Alliance Development.

Task One: Initiate, Explore, and Analyze.

Task Two: Synthesize and Plan.

Task Three: Establish Shared Objectives.

Task Four: Develop Working Committee Structure.

Task Five: Gain Quick Victories.

Task Six: Secure Institutionalize Buy–in

Task Seven: Implement and Evaluate.

Chapter 22 Postscript and Conclusion.

About the Author.

Index.

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THOMAS A. MCLAUGHLIN is Vice President for Consulting Services for the Nonprofit Finance Fund, a national leader in financing nonprofits, strengthening their financial health, and improving their capacity to serve their communities. He is nationally recognized as an expert in nonprofit mergers and alliances, having consulted nonprofits in over 200 such collaborations. He is contributing editor for the Nonprofit Times, for which he writes a monthly column, and is the author of Streetsmart Financial Basics for Nonprofit Managers, Third Edition (Wiley). He is also a member of the faculty at the Heller School for Social Policy and Management at Brandeis University.

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