A case study describing the merger between a HEI and Furthe Education corporation with complementary academic visions and costs.
This project examined the merits of different forms of governance organisation around the proposed merger of a higher education institution (Leeds College of Music) with a further education one (Leeds City college Group) The merger was examined in terms of the options available to the two parties, and the advantages these merger options would have for both organisations. A number of concerns and issues were identified ahead of the merger based on legal and financial due dilligence and identified risks. A key challenge was the lack of legislation for a HE corporation to move into an FE corporation, which had not been done before.
The case study describes the different goverance models considered, their relative merits and the data, stakeholder inputs and processes involved to achieve a successful outcome. Iidentified benefits were the limited company's network's ability to provide further community placement, which was a mission of both colleges. Financial and performance targets continue to be monitored through a group governance structure. The case study also highlights the need to carefully select the governance model ahead of merging, the need for a mutual understanding between the boards (in this instance through a memorandum of understanding), and the agreement and documentation of the varying levels of control and accountability for all parties involved in the process.
Emerging Governance Models