Colleges and universities nationwide are struggling. When tuition and housing costs exceed what most families can afford, many will forgo higher education institutions and turn to trades or jobs right out of high school. Mergers and acquisitions (M&A) help with these schools’ long-term success and bring additional programs and financial stability.
However, M&A comes with its own problems. School leaders can work through these challenges by understanding the typical ones that might arise.
1. Institutional Culture Differences
Every school has specific cultural perspectives — one might focus on sports, while another pushes students toward philanthropic endeavors. When two higher education institutions merge, figuring out how to mesh the two personalities is troublesome. Students chose a school because of its focus, but during the first two quarters of 2024, at least one higher education institution announced its closure or merger per week. Suddenly, a bigger school acquires a smaller one, and everything changes.
School leadership must start by assessing the differences in each school’s culture. Spend time sending out surveys, hold sessions where attendees can express their concerns, and interview faculty and students from each school. Once you have a list of findings, use it to work through any issues expressed as concerns.
When you know what you can keep and what has to change, create a united front for staff to get behind. Appoint a committee with members from each school to figure out how to merge the two cultures, while keeping the best aspects from each.
2. Clashes With Faculty
When four-year universities merge with two-year community colleges, the culture shock for some faculty and staff can be steep. Some benefits of teaching at a community college include fewer publication requirements, working toward tenure with a master’s degree, and smaller classes. Review policies for maintaining or receiving tenure to keep things fair for those with less stringent requirements, while still recognizing those who’ve accomplished higher degrees or publications.
Communication can ease some of the disagreements between professors from different colleges. Form groups for each department to help new teachers acclimate to the merged school.
3. Accreditation
Complicated accreditation rules and state requirements make it difficult to maintain status. M&As sometimes cause a school to go through a new accreditation review. A larger institution falls under more stringent requirements, so the paperwork can lead to delays or even loss of status.
To avoid problems, get the accrediting agency on board early in the process of the M&A. It can guide you and help you avoid problem areas. Appoint an internal governing board to ensure the new merged school is structured best to expedite the process, and ensure any changes increase academic integrity.
4. Communication with Stakeholders
Many are concerned about the rising costs of college and debt, but 95% of students felt higher education credentials were valuable. When it comes to mergers, it’s crucial to communicate with students and other stakeholders about how the changes will affect them. Transparency is key — it’s natural for leadership to want to sugarcoat the changes and share only positive news, but people know there will be bumps in the road with an M&A.
Create a plan to share updates regularly, create frequently asked questions and host town halls to answer any concerns. It’s OK to emphasize better opportunities and the school’s vision for the future, but address any problems rather than skipping past them. When people understand what will happen and why, they’ll be more likely to support any changes.
Segment your audiences. Professors need different facts from students. Each position will have varied concerns, so address the points they care about most.
5. Database Integration
Most universities operate on internal networks, which can utilize different coding languages, third-party software and processes. Merging the data from two separate institutions is challenging even for the most experienced information technology (IT) department.
If the student systems differ, some students will need to learn a new model, or both systems will require a refresh. Even administrative platforms might vary. The integration may be even more complex for schools with online learning systems. Before starting the migration process, take the time to understand which systems are compatible.
Start with an IT audit for both institutions. Check for redundancies, security weaknesses, and determine which systems are necessary for operations and which you can remove. Use tools to streamline integration and monitor changes along the way. Backups are crucial in a crash, so the IT department can set the system back to where it was before the error and start again.
Communicate with all stakeholders about when IT will perform updates and how long they might take. User experience should be the top priority.
Turn Challenges into a Positive Merger and Acquisition
Although M&As can be challenging, the opportunity to keep a school’s doors open and continue serving students is worth the effort. When leadership plans and addresses the common pitfalls before they occur, struggling schools can turn things around. Attendees, faculty and operations staff will benefit from the changes.
Higher institutions can ensure that the school culture aligns and communicate the changes clearly for a more positive transition. With enough planning and looking at keeping the best systems from each school, the newly merged college can find long-term success and be a place where students thrive.
