Collectively, Elizabeth Palmer Bennett and Peter F. Lake provide key insights into the benefits and challenges of mergers. Here are the top four takeaways:
1. When considering a merger, theological school leaders should conduct comprehensive and realistic financial projections for 5, 8, and 10 years out. This should include an analysis of enrollment trends, net tuition revenue, endowment restrictions, and deferred maintenance costs. Most importantly, allow yourself sufficient runway for decision-making.
2. It is important to involve stakeholders in merger deliberations, starting with the CFO and executive leadership, then expanding to board members, faculty, students, alumni, and donors.
3. Institutional leaders should consider reaching out to accrediting bodies for discussions about potential business changes to scope out any regulatory barriers.
4. Lastly, institutional leaders should conduct thorough due diligence on their own institution and potential partnering institutions before pursuing merger discussions.
Strategic Shorts, a video series designed to strengthen institutional capacity in theological education, features host Dr. David Rowe asking 2 industry experts 3 questions on critical topics relevant to theological education.
STRATEGIC SHORTS