Mergers and Collaborations

Collaboration has long been held up as a key core value driving the nonprofit world - in fact, it's one of Greenlights' organizational core values. Nonprofits are often looked to as models of collaboration, and many funders and other stakeholders have grown to expect nonprofits to explore strategies for maximizing efficiency and effectiveness such as formal mergers.

“Greenlights’ work with Arthouse on our merger with Austin Museum of Art was one of the keys to our success. Their structured merger process, professionalism, depth of expertise, and affordability made a relatively complicated merger not only a glowing success but also a thoroughly rewarding experience. We would highly recommend that any nonprofits considering a merger should consult with and engage Greenlights.”
- Melba Whatley, Former Board Chair, Arthouse at the Jones Center

Strategic Collaboration Defined

So what is strategic collaboration? At Greenlights, we define it as: two or more organizations working together in a meaningful, well-defined, and deliberate manner to accomplish a set of shared, mutually beneficial objectives they can better achieve together than alone.

The Strategic Collaboration Continuum

Nonprofit organizations collaborate in a variety of ways, from simply sharing office space to more complex, full-scale mergers. Greenlights' strategic collaboration services can help your organization create a stronger and more productive working relationship with your partners, wherever you are along the continuum.

The Collaboration Continuum

Merger Methodology

Mergers often generate many tangible benefits, including improved client service, better strategic focus and greater financial stability. However, mergers can also be complicated to navigate and are not right for every situation and organization.

Once two or more organizations have begun discussing the possibility of a merger, we recommend a three-step process that offers a systematic way for both organizations to evaluate a merger opportunity thoroughly and efficiently. This Greenlights model intentionally leverages the time of busy board members and staff leaders and emphasizes the most important part of a successful merger: open, direct and strategic communication.

Three-phase Process

Phase 1: Due Diligence and Letter of Intent
During the first Phase of a Merger Exploration, Greenlights helps organizations form a joint merger task force, set up communications channels, and gather confidential input from the board and key stakeholders. We help the task force identify and get resolution on any "deal breaker" issues, and document understandings in a Letter of Intent.

Phase 2: Merger Planning and Agreement
The second phase of the merger process builds on the Letter of Intent to begin moving forward based upon the intent to merger. Greenlights helps the merger task force seek resolution on remaining issues, including board structure, new budget, organizational charts and staffing, and system integration. The task force determines the legal structure of the new entity files with regulatory agencies, among other critical tasks.

Phase 3: Merger Planning and Agreement
In this third and final phase, the merger agreement is finalized and Greenlights helps initiate integration of program, finance, development and other support operations. Greenlights advises the task force on the important task of communicating the merger appropriately with all stakeholder groups, and celebrating the new chapter of nonprofit work that is about to begin.

For more information about our consulting services, contact Tara Kirkland, Director of Consulting, at (512) 477-5955, x262.