Home > Uncategorized > Mergers in Social Enterprise

Mergers in Social Enterprise

If the funding crisis for the sector turns out to be as bad over the next number of years (on the assumption that significant government cuts will continue for at least another two years) then one of the outcomes could be more mergers in the sector.

Today saw another announcement in the UK around this area. Two London-based charities that provide services for people with learning disabilities and mental health needs will merge at the beginning of April. Support for Living (operates in west and north-west London) and the Southside Partnership (south London) will form a group with a combined turnover of £25m and with over 650 staff. A name will be announced after the legal merger takes place on 1 April although interesting to note they will be able to use their brand under the new branding (this is a tricky marketing ploy, and also leaves the way open for other organisations to join at a later stage). At the moment no cuts are planned, but pooling of resources and I presume better bargaining power will be some of the results.

In a sector that tends to be very fragmented, this is one trend which isnt going away. Of course there are issues around mergers. Having worked in the mergers area many years ago as a consultant, I can confirm that these things need to be planned well. And not just on paper. Merging two organisational cultures is often the hardest thing to do, in any sector.

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