While engaging in partnerships and mergers can deliver huge benefits for all stakeholders these activities also bring higher levels of risk.

There is evidence that charity mergers, especially between smaller charities, increased in 2021 (Third sector review) largely perceived to be driven by financial considerations rather than strategic intent. The Charity Commission Register of Mergers lists 290 in 2021with nearly 7% of these in the South West of England. There is a reasonable expectation that with increasing economic pressures, reduced giving and increased costs that many charity trustees will be considering how they can best protect the services and support to their beneficiaries.

Both Tom Sneddon and Karon Clark are experienced Trustees who also have a background as Interim CEOs or Service Directors in the sector and are well placed to advise and support Trustees in considering either strategic partnerships or mergers. Both have extensive experience in charity mergers.

This advice and support can include helping Trustees

• Explore future options for the charity
• Assessment of benefits and risks to a merger or partnership
• Identify potential merger partners and assess their strategic fit for any merger
• Engage in preliminary confidential 3^rdparty discussions to assess appetite for merger
• Facilitate early exploratory engagement by the two parties
• Engage any necessary specialist finance, tax or charity law advisors
• Support negotiations to agree Heads of Terms
• Support an appropriate due diligence process
• Identify and resolve any issues with 3^rdparties including the Charity Commission
• Facilitate appropriate internal and external communication and engagement practices including with beneficiaries, staff, volunteers and donors

While these are the ‘traditional’ elements that lead to a successful merger Tom Sneddon and Karon Clark are also able to focus on the cultural and people aspects of any merger using specialist internationally proven assessments to assess the ‘likely fit’ of the values, behaviour and culture of the potential partners.

Call us on 07768 033652 / 07759 508296 and talk to us in confidence to see how we could help your charity in its future.