Great question this week, “What do you think about the market of mergers and acquisitions in the association space?”
I think we’ve seen an increase over the last several years – even before the pandemic – where industries were consolidating. One of the factors I’ve always seen that opens the door for mergers and acquisitions is when there is an internal change with a longtime executive director or staff. This change opens the door for the conversation.
However, let me tell you what I think is most important when approaching the table: is it in the members’ best interest for the mergers and acquisitions to occur, for people to consolidate, to form strategic alliances? Think about the members first. How will they benefit? Will they receive better services? Will the program offerings be improved for them? That’s the most important thing.
And, I think you can do that without merging or consolidating the groups. Right now we’re seeing a lot of great partnerships happen between associations – and other groups – where they are merging together just on a specific project such as advocacy, a joint meeting, a program, or benefit around health care, 401K’s and education.
Look for ways to benefit your members and if you need to find a partner to do that do it that way. Don’t start with merger and consolidation as your main motivation and I think you’ll be successful.
Thanks for the question.
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