The Atrómitos Way

#053: Mergers, Acquisitions & Strategic Options for Nonprofits in Uncertain Times (Part 2)

• Atrómitos, LLC • Season 5 • Episode 53

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In part one of this conversation, our panel of experts discussed legal, regulatory, and financial concerns during transitions in the nonprofit sector. Today, on part two, the discussion shifts towards organizational culture and communication.

Michealle Gady, Founder, President & CEO of Atrómitos, LLC, has more than 20 years of experience helping health and human service providers, government agencies, advocates, and philanthropies create lasting community change.
Jacob Ferrari is a partner at The Apex Law Group, PLLC, and works with nonprofits at every growth stage including formation, application for tax exemption, board governance, and corporate exit plans.
Michaela Kay is a CPA who serves as the practice leader for BDO's Seattle office, focusing on single audits, program specific audits, and financial statements audits for those in the life sciences, social services and housing industries.
Julie Morris currently serves as Interim Executive Director at Wellspring Family Services in Seattle. As a professional interim leader, she specializes in helping organizations navigate periods of change and transition.

Key Takeaways

  • Without for-profit shareholders, the traditional metrics for valuation don’t necessarily apply in the nonprofit sector. How should a nonprofit, and its assets, be valued during a merger or acquisition?
  • When it comes to finding complementary organizations, what does the “dating process” look like for nonprofits, and what can be expected during and after the “honeymoon” phase? Where do organizations stumble once the ink is dry?
  • What is the best way to navigate staff concerns during a transition? When should the conversation expand beyond board members to include staff—especially leadership—without kicking the rumor mill into high gear?

Whether your organization is considering a merger, acquisition, or asset transfer, keep in mind that these decisions involve legal, financial, and operational complexity that most organizations don't navigate every day. Leaders striving for a smooth transition need to know when to bring in outside expertise, act from a position of strength rather than crisis, and recognize the human element of organizational change.

If this episode resonated with you, please share it with your board, leadership team, or a colleague who might be wrestling with these questions.

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