Remember Your Dating Days?
In the for-purpose sector, the idea of a merger often arrives with a raised eyebrow.
“Am I ready for this?”
“What will people think?”
“Where will I find ‘The One’?”
“What if it doesn’t work out?”
These might be questions you might have asked yourself at the start of a relationship.
The same questions likely come to mind when thinking about a potential not-for-profit merger.
Because in many ways, entering into a merger is a lot like entering the dating ‘game’: full of nerves, excitement, discovery, and the occasional awkward dinner, but with the promise of a long-term, transformational, mutually beneficial relationship.
So, let’s take a lighter look at the serious business of mergers, by walking through the stages. Think of it as a guide to “relationship – readiness” for organisations.
1. Getting Yourself Ready
Before any good relationship, there’s the pre-work. The self-reflection. You might ask: “Am I in a good place?” “Do Ieven want a relationship?” “What am I looking for in a partner?”
In merger terms, this means getting your house in order. Have a vision. Clarify your mission. Know your strengths, and be honest about your weaknesses. Are we financially healthy? Is our governance solid? Are we open to change?
Loom’s free Merger Readiness Assessment is a good place to start.
You don’t need to be perfect, but you do need to be self-aware. No one wants to start a relationship with someone who hasn’t processed their last failed relationship (or, in this case, last strategic plan).
2. Putting Yourself Out There
This is the point where you stop quietly wondering and looking within; and start exploring. Maybe you let selected stakeholders know you’re open to a conversation. Maybe you attend networking events with a slightly different intention.
Maybe you engage a consultant to help you understand your own position, our needs, and even help identify compatible partners. Loom’s Merger Vision Workshop would be ideal for this.
Importantly, this isn’t about desperation. It’s about intentionality. You’re not announcing you’re “on the market” in bold neon lights, but you’re open. Curious. Willing to take a call and have a chat.
3. First Contact (a.k.a. The Coffee Chat)
You have met someone – maybe through a shared contact – maybe through your networks. Now it’s time to start to get to know each other.
Low-stakes, friendly, and full of polite curiosity. You chat about values. Vision. Organisational culture. You ask about their board. Their community relationships. Their finances. Their programs. There are some nerves, sure, but also a little spark.
Maybe you see shared purpose, or complementary skills.
Maybe you see red flags.
And that’s okay. Not every coffee needs to lead to a second date. Sometimes it’s enough to have met someone new and learned something about yourself.
4. Dating Properly (a.k.a. Shared Purpose and Strategic Alignment)
Now things are getting interesting. You’re spending more time together. You’re meeting each other’s teams. You’re getting to know them – looking at finances, governance models, and impact frameworks. You might even have a few disagreements. But there’s a sense of possibility. Maybe, just maybe, this could be something more.
This is where many Boards and executives start to feel nervous. It feels like things are moving fast. But remember: no one’s eloping. You’re dating. You’re seeing whether shared values can translate into shared strategy.
Work through these sensitivities with clear purpose and openness, perhaps utilizing Loom’s Shared Purpose Summit at this point.
5. Meeting the Family (a.k.a. Stakeholder Engagement)
You can’t hide a budding relationship forever. At some point, you need to tell the people who matter: staff, clients, funders, government partners. And just like meeting the in-laws, it requires preparation. Stakeholder Engagement would be part of the bespoke merger plan Loom would prepare for you.
Some stakeholders will be supportive. Some will have questions. Some might need reassurance that you’re not changing for the worse. Transparent communication is key here. No one likes surprises.
6. Making the Commitment (Agreements Being Made)
You’ve done the due diligence. You’ve tested alignment. You’ve consulted widely. The Boards agree there’s a strong case for merger, and the timing feels right. Now it’s about designing the transition: leadership, legal structures, cultural integration.
This is more than signing paperwork. It’s about setting up the new relationship for long-term success. Just like moving in together, it works best when there’s a shared vision and a clear understanding of strengths and weaknesses, of roles and responsibilities.
7. Happy Married Life (Building For Long-Term Success)
Spoiler: the work doesn’t end here. Successful partnerships take ongoing effort. Culture needs to be nurtured. Trust built. Shared identity formed.
Wth the right foundation, it can be transformational. Programs are stronger. More clients served. More impact delivered. Duplication is reduced. Staff feel more secure. It’s not always easy, but it can be worth it.
Mergers in the for-purpose sector aren’t about growth for growth’s sake. They’re about deepening impact, increasing sustainability, and ensuring the mission endures. And like any meaningful relationship, they require courage, clarity, and commitment.
So if you’re wondering whether a merger might be in your future, maybe it’s time to ask yourself: are you ready to meet someone?
Call to Action
If your not-for-profit is interested in navigating the dating world, you might benefit from a guide. Loom Consulting supports For-Purpose organisations with merger readiness, collaboration strategy, and change management – always with social impact at the centre. Whether you need to explore the feasibility of a merger or strengthen your strategic plan to meet these challenges head-on, contact Loom Consulting today.
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**Sources:**
– Centre for Social Impact (2023), “Mergers and Collaborations in the For-Purpose Sector”
— [https://www.csi.edu.au/media/uploads/mergers_and_collaborations_report_2023.pdf
– Social Ventures Australia (2023), “The Case for Strategic Mergers”
—https://www.socialventures.com.au/news/the-case-for-strategic-mergers/
– Philanthropy Australia (2023), “Merging for Impact” —https://www.philanthropy.org.au/blogs/news-and-stories/merging-for-impact/