Welcome to the Not-for-profit Mergers Toolkit

The changing funding climate for the community sector is inspiring many not-for-profit (NFP) organisations to explore new ways of operating and collaborating. Mergers are becoming an increasingly popular avenue for organisations seeking to strengthen their long term financial sustainability, increase the diversity and coverage of the services they provide or leverage the complementary capabilities of other organisations.

The decision to merge is a big one and the process of successfully bringing two (or more) organisations together is rarely straightforward. This toolkit is designed to help users to understand the opportunities and challenges of merging and serve as a reference point across each stage of the merger journey.

There are many existing resources that provide comprehensive guidance on particular aspects of mergers and acquisitions. These are referred to throughout this toolkit. This resource draws on the experiences and lessons of many NFPs to provide a detailed understanding of the many processes, negotiations and the “how” of moving through the different stages. This NFP merger toolkit is designed to demystify some of the trickier aspects of what can become a lengthy and costly exercise. The toolkit complements and references other existing resources that are designed to help NFPs plan and execute a merger.

This toolkit is structured across the following four stages of the merger journey:

  1. Assess – what are the potential risks and benefits of a merger?
  2. Prepare – how will we know we are ready for a merger?
  3. Negotiate – how do we negotiate the terms of a successful merger?
  4. Integrate – how do we transform a vision for a merger in to reality?

Please feel free to leave questions or comments on this part of the merger toolkit.