Brokering Mergers
BWB Solutions brokers sustainable nonprofit mergers through processes that include: identifying goals and potential partners, assessing strengths and challenges, holding preliminary and second-tier conversations, and facilitating merger agreements.
Examples of past merger work
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As a sustainability goal, the Family Centered Services board of directors concluded that while the organization had reserves, solid contracts and a capable management and staff, the future of its work could be more sustainable at a higher scale and that that would best be achieved through a long-term partnership with another “like” organization.
BWB Solutions was contracted to identify a partner that could help pursue this goal. Toward this end BWB Solutions undertook several prospecting and brokering activities. First, a series of conversations with the Board committee assigned to oversee this process helped identify organizational assets, strengths, challenges and a criteria for a final agreement. Next, BWB ventured to compile a list and conduct exploratory conversations of prospective partners. Based on the initial Committee-established criteria and discoveries from conversations, three ideal prospects were selected for deeper conversations. The findings from these conversations were presented to the Committee and a “first” preference for a long-term partnership was selected. BWB facilitated an initial conversation between representatives from the two organizations; helped develop initial commitment documents and a draft NDA and a decision to join efforts resulted. Within six months the two organizations were ready to make a commitment and planning for an integration began. Family Centered Services will be merged with Bridges by September 2026. Because each institution served a community that abutted each other’s, Bridges committed to retain all of Family Centered Services’ staff and location. Funders will continue to fund all services and one board and executive will oversee the newly joined organization.
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After 25 years, a new building, a new board, an interim exec, and an analyses that highlighted a very difficult funding road ahead, a decision was made by the r’Kids board of directors to search for a partner that would value the building, had strong finances and would keep alive the mission and possibly retain a relatively small staff. The interim director contacted BWB to help. Using a similar process as that used with Family Centered Services and Bridges, BWB identified 5 prospective long-term partners. Few were willing to consider or had a need for a building which immediately reduced the number of prospective partners. Continued exploration though resulted in one primary prospect, Children’s Community Programs, being the perfect fit. BWB presented their findings to the r’Kids board and after reviewing the options asked BWB to make introductions and set-up a meeting for deeper discussions about what each party needed and wanted began. BWB facilitated a few more discussions leading to it drafting a Letter of Commitment and a NDA to enable continued exploration. BWB served as the middle-“man” ensuring that information flowed expeditiously and thoroughly between the two parties. CCP conducted studies of r’Kids building, program and funding contracts and activities.
After 3 months of vetting, both parties were ready for making an agreement with r’Kids agreeing to transfer ownership of its building, communicate with funders about its intentions and transfer its staff. CCP agreed to the terms and closed the exploratory discussions with legal consultation and formal letters of agreement. r’Kids staff became a part of the CCP work and the building is now fully occupied by CCP staff while the r’Kids organization has been legally closed.