A four stage approach to mergers within the charity sector Guided by the Business Strategy determine a shortlist of target merger candidates Merger Strategy Feasibility Integration Planning Integration Execution ID: 654288
Download Presentation The PPT/PDF document "The Skylark Merger Framework" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
The
Skylark Merger Framework A four stage approach to mergers within the charity sector
Guided by the Business Strategy determine a short-list of target merger candidates.
Merger Strategy
Feasibility
Integration Planning
Integration/ Execution
Exploring the potential benefits and risks of merging. What opportunity would the merger deliver both parties? Are the charities’ cultures compatible?
Detailed Integration planning: How will the charities come together? How will the transition be handled? Formal due diligence.
Implement the agreed plan, review and measure associated short and long term benefits. Transition NewCharity to be fully up and running as ‘business-as-usual’.
Joint agreement to pursue
A
greement in principle of ‘Can’ they will come together
GO/ NO-GO
j
oint decision
NewCharity
fully up and running
I
II
III
I
V
END OF STAGE MILESTONES
Introduction
A clear and agreed process, with outcomes and decision points defined at the end of each stage, provides an invaluable “route map” to help Boards of Trustees, Chairs, CEOs and senior staff navigate their way through a merger effectively and efficiently. The four main phases of
The Skylark Merger Framework provide the key generic steps which can then be tailored to the specific circumstances of your merger.
StageSlide2
Key
Proces
s Steps
Outputs
Determine merger strategic requirement(s)
Analyse known candidates
Develop a broader potential list
Select short list of targets
Determine approach strategy
Strategic merger requirement(s)
Ideal merger candidate
criteria
Target candidate short-list(s) by strategic requirement
Merger Strategy
Feasibility
Integration Planning
Integration/ Execution
I
II
III
I
V
Guided by
the Business Strategy determine a short-list
of target merger candidates.
Determine the strategic requirement(s) of a merger eg. broaden geographic footprint, extend services to beneficiaries or reach new client groups, acquire additional assets. Generate a list of known or ideal candidates to meet these strategic requirements and use the characteristics of the ideal candidates to produce criteria for target merger candidates. Produce
a long list of possible candidates by applying these criteria to the Charity Commission Database and other sources to possible merger targets. Filter the long list to a short list of target candidates by strategic requirement. The Skylark Merger Framework Stage I: Merger Strategy
StageSlide3
Topic areas
Possible Outcomes
Vision & Benefits
Service Continuity
Leadership,
Governance and working arrangements
Operations
Legal & Financial Due-diligence, Options and Risks
Agreement on a draft Memorandum of Understanding (MOU) and a decision in principle to pursue a merger; move to Stage III: Integration Planning
OR
Some form of collaboration
OR
End of discussions
Merger Strategy
Feasibility
Integration Planning
Integration/ Execution
I
II
III
I
V
This stage aims to assess
the advantages and feasibility of the merger providing the CEOs and Boards of Trustees enough detail to secure to a
“decision in principle” to merge. The opportunity and any major issues are determined by answering questions within five topic areas. The Skylark Merger Framework Stage II: Feasibility
Stage
Exploring the potential benefits and risks of merging. Testing for major issues, such as: Are the charities’ cultures compatible? What opportunity would the merger deliver both parties? Is the proposed merger feasible?Slide4
Integration
Workstream
s
Outputs
Leadership, Governance, Organisation, People & Culture
Service & Beneficiaries
Financial
Legal
Communications & Branding
Facilities, IT & Systems
Project management & Service Continuity
Detailed project plan and status updates
Completed MOU
Financial and legal Due
D
iligence reports
Business Plan covering all organisational/operational areas with financial implications
Agreed Legal Model and steps to achieve
Merger StrategyFeasibility
Integration PlanningIntegration/ Execution
I
IIIII
IV
Detailed Integration planning: How will the charities come together? How will the transition be handled?
This stages undertakes legal and financial due diligence, confirms interim leadership positions and governance, builds a NewCharity business plan and develops a detailed implementation plan with costs and resourcesThe Skylark Merger Framework Stage III: Integration Planning
StageSlide5
Key
Process
Steps
Outputs & Outcomes
Merger Strategy
Feasibility
Integration Planning
Integration/ Execution
I
II
III
I
V
Implement
the agreed plan, review and measure associated short and long term benefits. Transition
NewCharity
to be
established and ‘business as usual’ (BAU) at steady state. Establish the foundation for transformation and realising benefits of the merger.
Stage
The
Skylark Merger Framework Stage IV: Integration/ Execution
This stages undertakes TUPE consultation, establishes interim leadership positions and governance, delivers changes to governance, organisation, ways of working, technology, infrastructure and estates
Leadership, Governance, Organisation, People & Culture and HRService & Beneficiaries, Communications & Branding
Financial & Commercial Facilities IT & SystemsProject management & Service Continuity
Agreed Go/No Go decisionTransitioned organisation
Decommissioned Estate/InfrastructureNew financial/commercial mechanisms in place