Discover the power of strategic partnerships in higher education.
With the rapid changes in today’s higher ed landscape, strategic partnerships such as mergers, acquisitions, and shared services are becoming essential pathways to sustainability and growth. Does your institution know where to start?
As noted in our 2025 Higher Ed Outlook, 2024 saw a brisk increase in the rate of closures at private four-year colleges. The percentage of private colleges merging also has increased over the last few years. While this process is challenging, it doesn’t need to be painful. The higher education consulting team at Forvis Mazars offers strategic, experience-based guidance throughout the merger, acquisition, or strategic partnership life cycle.
If your institution is considering expansion or consolidation—whether through a merger or buying or selling holdings—our team can help. We’ve performed due diligence on billions of dollars in transactions, equipping us to help you identify opportunities or risks related to your merger, acquisition, sale, or lease.
The Merger & Acquisition Process
- Strategy Development
In this stage, institutions assess their strategic objectives, and determine if merging, acquiring, or being acquired by another institution can help achieve these objectives. This involves a thorough analysis of the market, competitive landscape, and potential target institutions or programs. Strategy development aims to define the rationale behind a strategic partnership, whether it’s for market expansion, diversification, streamlining operations, or a lifeline from challenging financial contexts.
- Target Identification & Evaluation
Once strategic objectives are clear, the next stage involves identifying and evaluating potential target institutions. This includes conducting an evaluation to assess their financial health, operational capabilities, and cultural fit. The goal is to shortlist institutions that align with the initiator’s strategic goals and have the potential to create value through the merger or acquisition.
- Negotiation & Deal Structuring
When two or more institutions agree to explore a strategic partnership, the next stage is negotiation and deal structuring. This involves discussions between the institutions to agree on the transaction terms. Key aspects, such as the future of athletic programs and capital assets, are negotiated during this phase. Legal and financial advisors play a crucial role in helping craft a deal structure that aligns with regulatory and accreditation requirements and builds value for both parties.
- Due Diligence
This critical stage involves an in-depth assessment of the business, financial, legal, and operational aspects of the institution being acquired or both institutions if merging. The objective is to identify potential risks, liabilities, or issues that could impact the transaction's success. Due diligence provides a detailed understanding of the organization’s value and assists in making informed decisions.
- Integration Planning
Once due diligence is complete and transaction terms are agreed upon, the important step of integration planning begins. This involves creating a detailed integration plan that outlines how the two institutions will combine their operations, systems, cultures, and programs. The goal is to achieve anticipated synergies and prioritize a smooth transition. Effective integration planning is crucial to helping realize the merger or acquisition’s full value.
- Closing the Deal
The deal-closing stage involves finalizing all legal, financial, and regulatory requirements to complete the transaction. This includes obtaining necessary approvals from board members, regulatory authorities, and other stakeholders. The closing process also includes transferring assets, liabilities, and ownership to the acquiring institution. Successful deal closure requires meticulous planning and coordination to help confirm all conditions are met.
- Regulatory Approval
Navigating the regulatory landscape in higher education merger and acquisition activity is a multifaceted process that demands meticulous planning and compliance. By addressing key elements, such as accreditation, state authorization, federal requirements, governance, financial stability, stakeholder communication, and labor law compliance, institutions can receive the necessary regulatory approvals to successfully execute their mergers and acquisitions. Adherence to these regulatory requirements not only helps facilitate a smooth transition but also upholds the integrity and quality of higher education.
- Post-Merger Integration
Post-merger integration is the final stage of the merger and acquisition process, focusing on combining the operations, systems, and cultures of the two institutions. This phase aims to achieve the synergies and value envisioned during the strategy development stage. Effective integration requires continuous monitoring, communication, and management of the integration process. The success of this stage determines the overall success of the transaction.
We Can Be Your Guide
Our team has extensive experience serving more than 300 colleges and universities across the United States—from small, private colleges to large, public universities. With a global breadth of resources and local depth of industry knowledge, we can support your merger, acquisition, or strategic partnership from beginning to end.
The higher education consulting team at Forvis Mazars also can help guide your institution through the key challenges of a merger or acquisition:
If you have further questions on strategic partnerships, please reach out to a professional at Forvis Mazars.