Report backs M As in the NFP sector

Report backs M&As in the NFP sector​

RMIT University & CPA Australia have released Mergers, Amalgamations & Acquisitions in the Australian Not-For-Profit Human Services Sector.

The report aims to identify and assess the dynamics of motivations, risks, barriers and opportunities associated with mergers and acquisitions in the Australian NFP human-services sector.

Data for the study came from 21 interviews conducted in 2017 of board members, CEOs, and senior management and finance officers of NFP entities, including four who were specialist NFP governance consultants.  Lawyers with M&A experience were also consulted.

Annual reports and media coverage of M&As were also reviewed.

The findings support increased M&A activity as an effective strategy for organisational growth, gaining scale efficiencies and enhancing service choice and quality.  The M&A process itself, however, is often complex, time-consuming and can be costly.

Some M&A advantages included improved board and CEO leadership, clarity of social missions and goals, well-designed merger plans, and improved communications and stakeholder engagement.  The report recommends a range of good-practice guidelines for M&A success.