Bringing mergers to life - IVAR merger masterclass
On 27 September 2011, we ran a merger masterclass for organisations funded by Esmee Fairbairn Foundation, Lankelly Chase and The Tudor Trust. The event was facilitated by Ben Cairns (Director, IVAR) with Ben Hughes (formerly CEO, bassac, now Interim CEO, Community Development Finance Association) and Lawrie Simanowitz (partner, Bates Wells and Braithwaite Solicitors).
The masterclass provided an in-depth look at the drivers of merger in the voluntary and community sector (VCS), success factors, legal and formal requirements and, finally, the ‘lived’ experience of merger. The three speakers illustrated their points with examples from their recent experience of managing, facilitating and advising on the merger between bassac and the Development Trusts Association, which created Locality (www.locality.org.uk).
The event was attended by participants from a wide range of VCS organisations – from domestic violence support to arts charities; from prisoner rehabilitation services to architectural heritage. This range of backgrounds and experience led to stimulating discussions. In particular, participants wanted to explore the following questions:
- What are the options available – can the need for sustainability be met through partnership rather than merger?
- How can you mediate the effects of cultural differences between merger partners?
- What is the risk of mission drift if you embark on merger?
- Are there benefits to merging services but not organisations?
- Can the power of partnerships (including merger) be utilised to meet the pressures from funders to show efficiency and effectiveness?
- Do mergers ever save money?
- Where do you meet merger partners?
- How do you balance an organisation’s needs with funders’ expectations?
The role of funders in encouraging dialogue and open debate about merger within the VCS was also discussed. Participants thought that funders needed to be more open and transparent about their views on merger – particularly to reassure grantees that funds won’t be lost/reduced through organisations merging.
For more information on IVAR’s merger support work, please contact Eliza Buckley on 020 7380 3008 or email eliza@ivar.org.uk