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Legal structures for collaborations and mergers - PowerPoint PPT Presentation


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Legal structures for collaborations and mergers . David Saunders David Kelly NCVS. Association. Consortia. Collaboration. Alliance. Merger. Why collaborate?. Funders Less money available Combat bigger threats Convenience for commissioners.

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Presentation Transcript
slide2

Association

Consortia

Collaboration

Alliance

Merger

why collaborate
Why collaborate?

Funders

Less money available

Combat bigger threats

Convenience for commissioners

slide4
Combines the benefits of large and small scale
  • Rationalised area-wide structure, dovetailing independent service delivery responsive to local or specific client group needs
how do you do it
How do you do it?
  • Look before you leap
  • Find potential partners
  • Communicate throughout
  • Does it fit with trustees/vision/values/priorities?
  • Take advice
  • Agreement
models
Models

Separate organisations keep their independence but work jointly on some activities or functions

Organisations with resources/expertise offer assistance to others

New organisation is formed to do joint work on some activities (track record)

Group structure with lead organisation

Merger to form a new organisation, working as one on all activities

type of activities
Type of activities
  • Can be used to carry out charitable activities, service delivery, campaigning or policy work
  • Share premises or functions
  • Improve strategic efficiency
slide8

What is a bidding consortium?

A group of organisations who come together to win contracts

Speculative

Longer term collaboration, set up in advance with a wide membership and wide areas of activity

Responsive

Shorter term collaboration, set up in response to a particular opportunity with only relevant partners

slide9

Lead Provider

Delivery of contract and services

slide10

Prime Contractor / Managing Agent

Delivery of contract and services

slide11

Special Purpose Vehicle

New legal entity

Either delivers contract itself through transferred staff/resources or subcontracts to member organisations

Organisation 1

Organisation 2

Organisation 3

slide12

Standing Consortium

member

New Entity

Operates as hub or long term standing consortium

member

member

member

member

member

s.c.

s.c.

merger
Merger

Merger is where two or more organisations formally combine to form one organisation.

The term merger has no precise legal definition and is used to cover a number of different processes. Some mergers may also be referred to as takeovers

external drivers
External drivers

Pressure from funders to reduce duplication

Government encouragement

Competition with similar organisations

Stakeholder opinion

Public perception of an overcrowded voluntary sector

internal drivers
Internal drivers

Desire to provide more or better services

Need to increase efficiency through better use of resources

Preventing duplication of services

Financial difficulties

Raising public profile or boosting income

Loss of key staff or trustees

‘Survival’ &‘ rescue’

merger leading to a new organisation
Merger leading to a new organisation

Organisation A

Organisation B

Organisation C

New organisation

merger using an existing organisation s structure
Merger using an existing organisation’s structure

Organisation B

Organisation

A

Organisation A

things to consider
Things to consider
  • Do the outcomes justify the time and resources invested?
  • Loss of autonomy
  • Cultural mismatch
  • Mission drift
  • Damage if unsuccessful, which could be fatal