Dive Brief:
- While mergers are an intrusive, unequal path forward for two institutions, consolidations can have a range of financial benefits that respect the strengths of both institutions and provide mutual growth.
- University Business reports that strategic partnerships have replaced the merger frenzy of decades past, including administrative and academic consolidations, joint ventures, program and asset transfers, joint degree and certificate completion programs, and co-branding and co-marketing initiatives, among others.
- Concordia University Wisconsin and Concordia University Ann Arbor provide an example of a shared faith-based mission offering the foundation for a consolidation that is based in partnership, offering economies of scale and streamlined services that come from traditional mergers.
Dive Insight:
Several strategic partnerships and mergers have been announced this year. For one, Union Graduate College in Schenectady, NY will merge with the larger Clarkson University in Potsdam as a way to strengthen both programs and set them up for the possibility of expansion.
New York Gov. Andrew Cuomo is reportedly pushing for a merger between the State University of New York and the City University of New York. In the meantime, Cuomo announced a budget plan last week that moved one-third of the CUNY budget onto the city and faced such harsh criticism, he backpedaled on the plan. Should CUNY and SUNY merge, the governor would have more control over the city system, which, The New York Post reports, is his goal.