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Rating: 
Summary: A Serious Book for Serious People
Review: ................................................... Mr. McCormick's excellent treatment of the subject. Nonprofit Mergers is also an excellent work, but very different in style and tone. This is a serious book on a difficult subject by someone who has been there. The author's experience and his ability to weave his experience into the narrative was very helpful in establishing his credibility and his "hands-on" as well as his theoretical knowledge of the subject. I was especially impressed by his assertion, which I share, that nonprofit mergers rarely save any significant money, and should not be advocated or undertaken for economic reasons. There's an easy 4% or so in savings that can be realized from almost any merger; expecting more usually leads to disappointment. The reasons to merge may be "positive:" enhancing efficiency, effectiveness, community image, fundraising ability, etc.; or the reasons may be "negative:" Mr. McCormick has a good explanation of how factors unrelated to mission can lead to a spiral from liability concerns to viability concerns to survivability concerns. The merger process is detailed, with cogent explanations of the rationale for each step. There are serious legal, financial, and organizational/administrative issues to be faced all along the way, and tips on selecting and working with competent and experienced counsel are included, along with case studies, tables, forms, and samples. His caution about using counsel specifically trained in nonprofit mergers is well-take, Many specialists in working with for-profit mergers don't appreciate the importance of the emotional issues involved in mergers, and how a single volunteer with (seemingly) no "power" can scuttle the entire process. Nonprofit mergers must be a far more open process than their for-profit counterparts' could ever be. The book is well-sourced and well-researched, though the attributions sometimes impede the flow of the narrative. Nevertheless, it's a good "hands-on" sourcebook for serious executives and board members contemplating nonprofit mergers.
Rating: 
Summary: NPOs Must Decide While They Have a Choice
Review: Ours is an age of extensive consolidation within and often across specific industries. Regrettably, a majority of corporate mergers and acquisitions do not achieve the desired objectives. In this book, McCormick limits his attention to nonprofits, sharing many valuable lessons he learned from his involvement with various mergers such as divisions of the American Cancer Society. His approach to the subject is not from a legal perspective ("you can get a technical checklist from many competent law firms"); "it is not the contracts that make nonprofit organization (NPO) mergers work, it's the context. It's more about how it feels to the participants than how it is legally structured." (We can only speculate how many more mergers of for-profits would succeed if the focus were on the human context rather than on the legal structure.) McCormick encourages his reader to think about a merger as a strategy to "increase capacity, advance mission, and ensure long-term viability." He notes that NPOs which merge are beginning to "put pressure on small organizations and gradually out-compete them for volunteers, donors, media attention, advocacy, and impact on their cause." Moreover, mergers "produce the capital and capacity for inventiveness. Mergers take competition through cooperation to what I call 'co-operation.' a nonprofit corporate structure that competes better just because of the way it is organized." The word "mergers" is in the title but the word "partnerships" is in the subtitle and I think much of this book's substantial value is found in what McCormick has to say about partnerships or, if you prefer, strategic alliances. Great benefit can also be derived from the process of determining whether or not to merge with a given candidate. Due diligence may perhaps reveal more information about your own organization than it does about a given candidate. McCormick organizes his material within nine chapters: Deciding to Merge Selecting a Merger Partner Laying the Groundwork with Staff and Volunteers Negotiating and Determining Structure Dissolution vs. Merger Technical and Legal Aspects Working with Consultants and Attorneys Transition to Merge Evaluation and Stewardship After his Conclusion, McCormick provides 12 appendices which include relevant case histories, informative sample documents, and practical checklists. Who will derive the greatest benefit from this book? Obviously, governing board members as well as senior-level executives in an NPO which is an active merger candidate, either to acquire or be acquired. I also highly recommend this book to governing board members and senior-level executives of all other NPOs which could soon become involved (voluntarily or involuntarily) in merger negotiations or at least in preliminary discussions. At this point, I presume to offer a suggestion to decision-makers in any NPO: Schedule a 2-3 day off-site workshop and require all participants to read this book in advance. Use its "Table of Contents" for the agenda. The group's objective is to collaborate on a Game Plan (if an active merger candidate) or a Contingency Plan ("just in case"). Here is how McCormick concludes: "There is an old saying that 'ships are safe in port, but that is not why they are built.' Merger is a time for leadership to set sail and captain the organization to a new land. A land of opportunity is made available by the increased capacity of merger with a dynamic partner." To which I add, Bon Chance! When appropriate, Bon Voyage!
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