Mergers in Higher Education: A Proactive Strategy to a Better Future?

Title: Mergers in Higher Education: A Proactive Strategy to a Better Future?

Authors: Ricardo Azziz, Guilbert Hentschke, Bonita Jacobs, Lloyd Jacobs, & Haven Ladd

Date: September 2017

A recent report commissioned and published by the TIAA Institute examines the nature of mergers and acquisitions in higher education. The report aims to assist higher education leaders to better understand the possibility of institutional mergers as components of their long-term strategic plans.

The authors look to historical examples of mergers and acquisitions within the higher education sector and conclude that mergers provide opportunities for financial savings, leveraging greater size and scale, and re-engaging with stakeholders. However, costs also need to be considered, including the expenditure of political capital by leadership.

They conclude that the decision to consolidate institutions is difficult, but should be considered if there is a will to significantly improve value to students, faculty, and the community, or to significantly improve service quality. Mergers should not only be considered as a final option: The authors argue that leaders should continually scan the environment around them for opportunities to strengthen their institutions.

Read the full report here.