For better or worse, the economy has caused an increase in the
consolidation of tax exempt organizations as less robust
organizations have sought refuge for their programs in larger, more
recession-proof organizations and as organizations of similar size
or financial status have joined together to weather the economic
storm. Whatever the reason, tax exempt organizations are
increasingly finding themselves in the relatively uncommon
territory of mergers and acquisitions. While these types of
transactions can be comfortable ground for many for-profit
entities, many tax exempt organizations find the mergers and
acquisitions process unfamiliar and daunting.
Some aspects of a potential merger or acquisition are the same
for both for-profit and tax exempt organizations, while others are
drastically different. The process for a potential merger or
acquisition for both types of organizations is much the same: (1)
preliminary talks where both parties feel each other out in
