On 23 October, we had the pleasure of hosting CEOs and senior managers from 17 prominent charities within the social care sector for a roundtable discussion about the possibilities of mergers and partnerships.

After connecting over brunch, we heard from Paul Townsley - chief executive officer of the recently merged charity Waythrough. Waythrough is a national charity which supports people facing multiple disadvantages and is the product of a recent merger of Humankind and Richmond Fellowship. Paul gave us a great insight into how the two charities came together with a vision to support their beneficiaries better and formally merge in June 2024. 

Our co-host Cara Evans, head of partnership and mergers at Eastside People, then led an interesting Q&A and a positive discussion about what to consider when merging charities. Here are our key takeaways for other CEOs and senior managers of charities who were not able to make it:

• Value - Any merger has to be ‘worth it’ for all parties involved. Your board needs to consider if and how a merger would add value to your charity's work.
    
• Reasons to believe - Identify the reasons for the merger or your reasons to believe.  You should keep these to hand so you and your board can return to them during the merger process if things get difficult.
   
• Strategy - Your board should agree on a strategy with you in advance of any merger discussions. If they don’t, this could mean that you will end up committing to things which decide the board’s strategy for them. 
   
• Red lines - Identify any ‘red lines’, which are the matters that you are not willing to change or compromise. Your board should do this as soon as they can so you can discuss them with your proposed merger partner at an early stage.
   
• Consultation and communication - Consultation with your charity’s service users and beneficiaries should be front and centre at the start. Communication with your staff is key because they may be concerned about what the merger will mean for them and their jobs. 
   
• Evidence - Any decisions that your board makes relating to the merger must have an evidence base arising from your due diligence results (e.g. the legal structure of the merged charity and who mergers into who may be determined by the size and scale of the novations that would be necessary if one organisation has lots of contracts). 
   
• Rebrand - If the parties are averse to the perception of a ‘takeover’ then it can be helpful to rebrand with a new name. 
   
• Pace not speed - Formal mergers take time to complete. It can therefore be helpful to look at the progress being made in terms of pace, rather than speed.
   
• Third-party - It can help to have an independent party to facilitate the merger and to offer experience, support and expertise. The right independent person might also be able to assist you with the project management aspects of the merger leaving you with the capacity to focus on your charity’s day-to-day service delivery alongside the merger project.

For more information

If you are considering a merger or looking for a merger partner, there is plenty of help available. We would be delighted to support you with the legal aspects of your merger so please contact Laura Jordan or myself for a further discussion. 

Eastside People offer a range of support services from helping you find the best merger partner to being an independent voice through the process. Several grant-making organisations can also help fund the costs of a merger including the costs of any pre-merger due diligence.