Economic Slump Likely to Mean M&A Surge among Nonprofits
Foster warns nonprofit organizations not to rush into merger agreements too quickly in attempts to shore up finances or to make their organizations appear more attractive to funders in a faltering economy. Rather nonprofits should only enter into deals with a full understanding of the strategic rationale for the deal and the suitability of their nonprofit field for merger success.
“Rather than being viewed as a last hope for some, nonprofits, including the largest and healthiest organizations, need to begin looking at M&A as a proactive tool in key sectors for strengthening effectiveness and making the best use of scarce resources to continue deliver vital community services,” concluded Foster. The study further calls on philanthropist to step into the breech as matchmakers for combinations that could truly increase impact in the social sector.
To receive a copy of Nonprofit M&A: More than a Tool for Tough Times or to schedule an interview with William Foster, please contact: Katie Smith Milway, email@example.com, 617-572-2833
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