How TRUST is Both the Driver and Inhibitor in Not-for-Profit Sector Growth Strategies: The “Lived” Experience of Merger and Acquisition

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avondale-bepress-to-dspace.facultyBusiness
avondale-bepress-to-dspace.peer_review_statusPeer reviewed before publication
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.articleid1025
avondale-bepress.authorsLisa Barnes
avondale-bepress.context-key14954572
avondale-bepress.coverpage-urlhttps://research.avondale.edu.au/bit_conferences/26
avondale-bepress.document-typeconference
avondale-bepress.field.author_faculty_disciplineBusiness
avondale-bepress.field.comments<p>Used by permission: Accounting and Finance Association of Australia and New Zealand (AFAANZ) and the author.</p>
avondale-bepress.field.custom_citation<p>Barnes, L. (2019). <em>How TRUST is both the driver and inhibitor in not-for-profit sector growth strategies: The “lived” experience of merger and acquisition.</em> Paper presented at the Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, Brisbane, Australia. Retrieved from http://www.afaanzconference.com/</p>
avondale-bepress.field.embargo_date2019-07-18T00:00:00Z
avondale-bepress.field.field_of_education08 Management and Commerce
avondale-bepress.field.for150312 Organisational Planning and Management
avondale-bepress.field.peer_reviewBefore publication
avondale-bepress.field.proceedingsAccounting and Finance Association of Australia and New Zealand (AFAANZ) Conference
avondale-bepress.field.publication_date2019-07-01T00:00:00Z
avondale-bepress.field.research_centreChristian Education Research Centre
avondale-bepress.field.source_publication<p>This conference paper was originally published as:</p> <p>Barnes, L. (2019). <em>How TRUST is both the driver and inhibitor in not-for-profit sector growth strategies: The “lived” experience of merger and acquisition.</em> Paper presented at the Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, Brisbane, Australia. Retrieved from http://www.afaanzconference.com/</p>
avondale-bepress.field.staff_classificationPermanent
avondale-bepress.fulltext-urlhttps://research.avondale.edu.au/cgi/viewcontent.cgi?article=1025&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.label26
avondale-bepress.publication-date2019-07-01T00:00:00Z
avondale-bepress.publication-titleBusiness Conference Papers
avondale-bepress.statepublished
avondale-bepress.submission-date2019-07-18T16:31:33Z
avondale-bepress.submission-pathbit_conferences/26
avondale-bepress.titleHow TRUST is Both the Driver and Inhibitor in Not-for-Profit Sector Growth Strategies: The “Lived” Experience of Merger and Acquisition
avondale-bepress.typearticle
dc.contributor.authorBarnes, Lisa
dc.date.accessioned2023-11-01T00:28:58Z
dc.date.available2023-11-01T00:28:58Z
dc.date.issued2019-07-01
dc.date.submitted2019-07-18T16:31:33Z
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.versionBefore publication
dc.identifier.citation<p>Barnes, L. (2019). <em>How TRUST is both the driver and inhibitor in not-for-profit sector growth strategies: The “lived” experience of merger and acquisition.</em> Paper presented at the Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, Brisbane, Australia. Retrieved from http://www.afaanzconference.com/</p>
dc.identifier.urihttps://research.avondale.edu.au/handle/123456789/14954572
dc.language.isoen_us
dc.provenance<p>This conference paper was originally published as:</p> <p>Barnes, L. (2019). <em>How TRUST is both the driver and inhibitor in not-for-profit sector growth strategies: The “lived” experience of merger and acquisition.</em> Paper presented at the Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, Brisbane, Australia. Retrieved from http://www.afaanzconference.com/</p>
dc.subjectStrategic Merger
dc.subjectAcquisition
dc.subjectTrust
dc.subjectDue Diligence
dc.subjectgovernance
dc.subjectlived experience
dc.titleHow TRUST is Both the Driver and Inhibitor in Not-for-Profit Sector Growth Strategies: The “Lived” Experience of Merger and Acquisition
dc.typeConference Publication
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