Getting Your House in Order Before Considering a Merger

When organisations start talking about mergers, the assumption is often that growth or scale is the goal.

But in practice, most merger conversations begin somewhere much less strategic: something no longer feels stable.

Leadership is carrying too much. Systems are no longer holding the way they used to. Decision-making slows down. The organisation is still functioning, but not as effectively as it should.

That was one of the more interesting parts of my recent conversation with Conrad Liveris about the merger between Sussex Street and Palmerston.

The merger itself wasn’t the starting point. Getting the organisation back into shape was.

Stabilisation Before Growth

When Conrad stepped into the Chair role at Sussex Street, the organisation wasn’t collapsing. But it was clear there were issues that needed attention before any serious conversation about partnerships or structural change could happen.

There had been leadership turnover. Internal inconsistencies. And a sense that the organisation was no longer operating at the level it needed to.

So the first year wasn’t spent pursuing growth. It was spent stabilising the organisation.

That distinction matters more than most people realise.

"One of the biggest mistakes organisations make is looking externally before they’ve dealt with what’s happening internally."

A merger will not solve structural confusion. It won’t fix leadership misalignment. And it won’t automatically create sustainability if the underlying model is already under pressure.

If anything, it tends to amplify those issues.

Understanding Your Business Model in Operational Terms

One of the points Conrad raised in our discussion was the importance of understanding your business model properly — not just broadly, but in operational terms:

• How does funding actually flow?
• What assumptions is the organisation relying on?
• What happens if one part of the system changes?

Those questions sound simple, but many organisations struggle to answer them clearly. Particularly in a funding environment that is becoming more complex and less predictable.

That’s where a lot of pressure is coming from right now. Not because organisations are poorly run, but because many are operating with structures and models that were built for a different environment.

The Questions Leaders Must Ask Earlier

The organisations navigating this well are usually the ones willing to ask difficult questions earlier:

Those conversations are uncomfortable, but they matter. Because by the time options narrow, decisions become reactive. And that’s usually when mergers become harder, not easier.

"There’s also a broader misconception in the sector that growth automatically equals impact. It doesn’t."

Sometimes the more effective move is consolidation. Or simplifying. Or fixing operational issues before adding complexity.

That was one of the strongest takeaways from this conversation. The merger wasn’t treated as a rescue strategy. It was approached after a significant amount of internal work had already happened.

The Core Lesson for Sector Leaders

Before looking outward, make sure the organisation itself is stable, aligned, and clear on what it’s trying to achieve.

Because these decisions shape more than structure. They shape the long-term sustainability of the organisation, and the people who rely on it.