Behind every merger or acquisition is a negotiation, says Elizabeth Troutman, an education attorney at Brooks Pierce Law Firm, on this episode of The University Business Podcast.
In an era defined by mounting financial pressure, the question is no longer if a merger or acquisition might be necessary, but what makes a deal successful. There are two essential elements every institution must understand before leaders reach out to another school.
“Everyone must be on the same page and clear-eyed about the institution’s finances because this is going to take a long time to address,” she says. “The other thing is you must understand the strengths of your institution.”
Colleges looking to capitalize on a merger or acquisition must find a partner that can bring unique value.
University Business staff writer Alcino Donadel and Troutman discussed one example: the merger between Elon University and Queens University of Charlotte. While Queens offers its students the hustle, bustle and proximity to employment opportunities in an urban area, Elon offers the traditional, small-town experience.
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“The key for these colleges is to be thinking about what makes them unique and see if there is some alignment somewhere out there that could make sense,” Troutman says.
Underneath the surface of every school lies an array of legal and logistical puzzle pieces that leaders from each institution must address. They include:
- Navigating faculty tenure and employment contracts
- Integrating technology systems and student data
- Maintaining accreditation requirements
- Addressing student expectations around degree programs and campus life
Improving the student experience should be the merger’s driving force, Troutman says.
“There’s a lot of PR and marketing-type language surrounding mergers and acquisitions, but I do think they present great opportunities for the student as long as the president and board are smart and strategic.”
