5 Ways to Promote a Successful Merger
When Union Graduate College recently announced it will merge its small, but stable, program with the much larger Clarkson University, it was indicative of a larger trend among a handful of higher education institutions currently considering, or going through, a merger.
As is the case with Union Graduate College, many higher education institutions, especially those with small enrollments, are facing financial hardships, limited prospects for enrollment, and a decline in net tuition revenue, with one in 10 public and private colleges reportedly experiencing "acute financial distress," according to 2014 Moody’s report.
As more colleges and universities continue to face these dire financial conditions, mergers and acquisitions are becoming a viable option and consideration for survival.
Huron’s Point of View: For mergers or acquisitions to be financially and strategically attractive to both parties, each need to demonstrate their value and ability to facilitate a smooth transition, while simultaneously working to preserve key, identifying aspects of their landmark programs and core traditions. This is no easy endeavor, as it requires proactive planning long before an agreement is signed.
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