Campbell Tickell is an acknowledged specialist in supporting affordable housing providers to form new partnerships. This experience has helped to define what we believe are critical factors in whether partnerships discussions reach a successful conclusion:
1. Ensure your board and executive team are aligned with your strategy. This will provide a firm foundation for any discussions and help advance negotiations quickly. Be clear about your vision for the partnership and what you want it to deliver.
2. Be open and honest with your potential partner from the start. If your organisation has any issues, be clear what they are and how you are addressing them (they will only come out later as part of due diligence).
3. Initially focus on building a business case and Heads of Terms – early discussions should focus on establishing why a partnership is a good idea, how it will benefit customers and how it will be formed.
4. Have few, if any, ‘red lines'. Starting discussions with an open mind and a co-creative attitude will offer a more positive platform for discussions. In our experience, the greater the number of red lines either party bring to the table, the less likely it is that a partnership will be formed.
5. Sustain pace. A lack of progress will undermine the successful formation of a partnership. Once both parties are committed, pace should be maintained and driven to keep both parties focused and prevent inertia.
6. Cultural fit is important. Quite often, there is a failure to properly understand respective cultures and how they will come together post-merger. Failure to create a single unified culture within the new organisation will lead to the creation of silos and hold it back from delivering the merger business case. Cultures do not need to be precisely aligned – but any differences should be understood.
7. Don't neglect integration. The integration of organisations is a significant undertaking. It needs to be viewed as an organisation-wide programme, with a full understanding of co-dependencies and resource overlaps. Start planning well ahead of the partnership going live and do not underestimate the resource it will need.
To see more on Campbell Tickell's Merger & Partnership support, visit our website www.campbelltickell.com
David Williams - partner, Campbell Tickell: david.williams@campbelltickell.com
Glenn Allum - director, Campbell Tickell: glenn.allum@campbelltickell.com
