Merger, Acquisition or Takeover: How Trust is Both the Driver and Inhibitor in Not-for-profit Sector Growth Strategies

Simple item page
avondale-bepress-to-dspace.facultyBusiness
avondale-bepress-to-dspace.peer_review_statusNon-refereed
avondale-bepress.abstract<p>This research is a case study based on the “lived experience” of two not-for-profit organisations wanting to create synergies and efficiencies in back office operations and to increase the offerings of services to existing clients by joining together as one business unit. This research has followed the different stages of the proposed merger or acquisition from the initial signing of the Memorandum of Agreement (MOA), to the strategic planning for the new entity including the potential organisational structure, board structure and executive team recruitment. The negotiations have varied from the rejection of a takeover, to the proposal of a merger, to the eventual decision for the larger organisation to “acquire” the smaller organisation. These decisions were deliberated at great length by both organisations, but the clear driver in all negotiations was TRUST. Trust that at all times the outcomes should benefit clients, trust that the new Board would be represented in equal parts by both of the organisations and trust that the new senior executive team of the single entity would utilise the efficiencies gained to sustain the organisation. But this trust also became an inhibitor at times, where trust was used as an excuse to not carry out all due diligence governance processes (DDGP). This lived experience has shown that Trust is indeed an important factor in any proposed merger or acquisition but will never replace DDGP. In fact DDGP enhanced trust, and enabled for more transparent decisions to be reached by both parties at the negotiation table. The not-for-profit sector can learn a great deal from this case study that shows the benefits of societal needs of their clients in aged care, disability and transport by a merger or acquisition. It should be used by other not-for-profit organisations to put into practice strategic merger and acquisition processes to create an organisation that is run efficiently and for the benefit of their clients, with a combination of trust and DDGP.</p>
avondale-bepress.articleid1034
avondale-bepress.authorsLisa Barnes
avondale-bepress.context-key26400770
avondale-bepress.coverpage-urlhttps://research.avondale.edu.au/bit_conferences/33
avondale-bepress.document-typeconference
avondale-bepress.field.author_faculty_disciplineBusiness
avondale-bepress.field.comments<p>Used by permission: the author.</p>
avondale-bepress.field.custom_citation<p>Barnes, L. (2021, September 23-24). <em>Merger, acquisition and takeover: How trust is both the driver and Inhibitor in not-for-profit sector growth strategies</em> [Paper presentation]. 16th EIASM Interdisciplinary Conference on Intangibles and Intellectual Capital, Lille, France.</p>
avondale-bepress.field.doihttps://www.eiasm.org/UserFiles/XVI%20EIASM%20Conference%20-%20Lille%20%20Online%20-%2023-24%20Sept%202021%20-%20Programme%20-%20FINAL%20without%20links.pdf
avondale-bepress.field.embargo_date2021-11-30T00:00:00Z
avondale-bepress.field.field_of_education08 Management and Commerce
avondale-bepress.field.for_202138 ECONOMICS
avondale-bepress.field.peer_reviewNon-refereed
avondale-bepress.field.proceedings16th EIASM Interdisciplinary Conference on Intangibles and Intellectual Capital - Sustainability and Integrated Reporting, Governance and Value Creation
avondale-bepress.field.publication_date2021-09-23T00:00:00Z
avondale-bepress.field.reportable_itemsE2
avondale-bepress.field.research_centreChristian Education Research Centre
avondale-bepress.field.staff_classificationPermanent
avondale-bepress.fulltext-urlhttps://research.avondale.edu.au/cgi/viewcontent.cgi?article=1034&amp;context=bit_conferences&amp;unstamped=1
avondale-bepress.keywordsStrategic Merger
avondale-bepress.keywordsAcquisition
avondale-bepress.keywordsTrust
avondale-bepress.keywordsDue Diligence
avondale-bepress.keywordsgovernance
avondale-bepress.keywordslived experience.
avondale-bepress.label33
avondale-bepress.native-urlhttps://research.avondale.edu.au/context/bit_conferences/article/1034/type/native/viewcontent
avondale-bepress.publication-date2021-09-23T00:00:00Z
avondale-bepress.publication-titleBusiness Conference Papers
avondale-bepress.statepublished
avondale-bepress.submission-date2021-11-30T21:15:01Z
avondale-bepress.submission-pathbit_conferences/33
avondale-bepress.titleMerger, Acquisition or Takeover: How Trust is Both the Driver and Inhibitor in Not-for-profit Sector Growth Strategies
avondale-bepress.typearticle
dc.contributor.authorBarnes, Lisa
dc.date.accessioned2023-11-01T00:34:17Z
dc.date.available2023-11-01T00:34:17Z
dc.date.issued2021-09-23
dc.date.submitted2021-11-30T21:15:01Z
dc.description.abstract<p>This research is a case study based on the “lived experience” of two not-for-profit organisations wanting to create synergies and efficiencies in back office operations and to increase the offerings of services to existing clients by joining together as one business unit. This research has followed the different stages of the proposed merger or acquisition from the initial signing of the Memorandum of Agreement (MOA), to the strategic planning for the new entity including the potential organisational structure, board structure and executive team recruitment. The negotiations have varied from the rejection of a takeover, to the proposal of a merger, to the eventual decision for the larger organisation to “acquire” the smaller organisation. These decisions were deliberated at great length by both organisations, but the clear driver in all negotiations was TRUST. Trust that at all times the outcomes should benefit clients, trust that the new Board would be represented in equal parts by both of the organisations and trust that the new senior executive team of the single entity would utilise the efficiencies gained to sustain the organisation. But this trust also became an inhibitor at times, where trust was used as an excuse to not carry out all due diligence governance processes (DDGP). This lived experience has shown that Trust is indeed an important factor in any proposed merger or acquisition but will never replace DDGP. In fact DDGP enhanced trust, and enabled for more transparent decisions to be reached by both parties at the negotiation table. The not-for-profit sector can learn a great deal from this case study that shows the benefits of societal needs of their clients in aged care, disability and transport by a merger or acquisition. It should be used by other not-for-profit organisations to put into practice strategic merger and acquisition processes to create an organisation that is run efficiently and for the benefit of their clients, with a combination of trust and DDGP.</p>
dc.description.versionNon-refereed
dc.identifier.citation<p>Barnes, L. (2021, September 23-24). <em>Merger, acquisition and takeover: How trust is both the driver and Inhibitor in not-for-profit sector growth strategies</em> [Paper presentation]. 16th EIASM Interdisciplinary Conference on Intangibles and Intellectual Capital, Lille, France.</p>
dc.identifier.doihttps://www.eiasm.org/UserFiles/XVI%20EIASM%20Conference%20-%20Lille%20%20Online%20-%2023-24%20Sept%202021%20-%20Programme%20-%20FINAL%20without%20links.pdf
dc.identifier.urihttps://research.avondale.edu.au/handle/123456789/26400770
dc.language.isoen_us
dc.rights<p>Used by permission: the author.</p>
dc.subjectStrategic Merger
dc.subjectAcquisition
dc.subjectTrust
dc.subjectDue Diligence
dc.subjectgovernance
dc.subjectlived experience.
dc.titleMerger, Acquisition or Takeover: How Trust is Both the Driver and Inhibitor in Not-for-profit Sector Growth Strategies
dc.typeConference Publication
Files
Original bundle
No Thumbnail Available
Name:
auto_convert.pdf
Size:
426.19 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
How_trust_is_both_the_driver_and_inhibitor.docx
Size:
243.83 KB
Format:
Microsoft Word XML
Download
Collections
Business