Assessing the financial impact of a merger

When considering the possibility of merging not-for-profit organizations, it’s important to consider the financial impact.

In the November/December edition of the Director Journal’s column Directors’ Dilemma, partner Adrienne DiPaolo addresses the question: “Is a merger right for our not-for-profit?”

“While the long-term costs can make or break the deal, the immediate costs [such as advisor fees and potential severance payments] may be prohibitive without additional funding,” Adrienne said.

She added that significant short-term costs may include harmonizing salaries and benefits within the two organizations, and consolidating departments such as finance, information technology and human resources.

You can read the full column here.

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