The Part of Mergers No One Talks About

Most nonprofit mergers don’t fail because of strategy.

They fail because people move too fast, or worse, without clarity.

Over the past few years, I’ve seen a growing number of well-run, well-intentioned organisations hit a wall. Some quietly restructure. Others don’t get that chance.

When you look closely, the issue is rarely capability. It’s misalignment.

I recently sat down with Conrad Liveris to unpack the merger between Sussex Street and Palmerston. Not as a highlight reel, but as a real decision-making process.

Because that’s where most organisations get stuck: not in execution, but in the moment where something clearly isn’t working, but no one wants to say it out loud.

What Stood Out: Clean-Up Before Growth

When Conrad stepped in as Chair, Sussex Street wasn’t collapsing, but it wasn’t stable either.

There was leadership turnover. There were internal inconsistencies. And the organisation was not operating at the level it needed to.

So the first move was not growth. It was clean-up.

An entire year focused on getting the house in order, before even seriously pursuing a merger.

"That alone is where most organisations get it wrong: they look outward before they fix what’s inside."

The Part Most People Misunderstand About Mergers

A merger is not a strategy. It is an outcome.

If you don’t understand your business model, your funding structure, and your internal capability, you are not ready to merge.

As Conrad put it in our conversation, you have to be able to map it clearly: If we do this, we get that. If we change this, here’s what happens.

Simple in theory, rarely done in practice.

Alignment Is Not a Buzzword

It is not about shared values written on a website.

It is about whether you can pick up the phone, challenge each other, and still move forward.

It is about whether both organisations see their role the same way: Are you just delivering contracts, or are you genuinely trying to improve lives?

Because those are two very different organisations. And putting them together rarely ends well.

The Uncomfortable Truth

Many organisations are one contract away from being exposed.

Not because they are poorly run, but because the model itself is fragile. One funding change. One shift in policy. One missed assumption. And suddenly, sustainability becomes a real question.

"Mergers, when done well, are not about survival. They are about building something stronger, more resilient, and more aligned with the people you serve."

Why This Matters Now

We are seeing more organisations enter voluntary administration. Not small, informal groups, but established, professional organisations.

That should be a signal. The environment is changing.

The question is whether leadership is willing to respond early, or wait until the options narrow.

I share more of this in the full conversation, including the decisions behind the Sussex Street and Palmerston merger, and what leaders should be paying attention to right now.

Because these decisions are never just strategic. They shape the future of the organisation and the people it exists to serve.