The Charity Commission encourages trustees to consider whether a formal merger would be in the best interests of a charity’s beneficiaries. Danny Davis, a specialist is mergers and integrating organisations after mergers shares some of the things that experience has taught him to think about in any merger situation.
• Be clear about why the organisations are merging – what are the benefits going to be?
• Don’t just understand the similarities which make the organisations good candidates for a merger – recognise the major differences that will exist too.
• Planning is vital to a successful merger and integration of the two organisations – begin planning as soon as possible.
• Think about how the back office functions, such as finance, IT, human resources and communications might need to change as a result of the merger.
• Is the technology used by the two organisations compatible?
• Something unexpected will always come up. Try to be as ready as possible to address it quickly.
• Cultural differences will exist, which can cause problems. It helps to try to foresee these as much as possible.
• You don’t have to do everything at once – think about having stages in the process of integrating the organisations.
More information about Danny’s work at DD Consulting can be found through contacting danny.davis@ddavisconsulting.com
The Charity Commission also provides resources on collaboration and mergers, available at htttp://www.charitycommission.gov.uk/enhancingcharities/cwmresources.asp