College mergers are no longer considered a rare “last resort” for struggling institutions. Closures and consolidations have accelerated across the U.S. over the last decade, driven by rising costs, enrollment pressures, demographic shifts, and an increasingly competitive landscape. During our recent webinar, “Higher Ed Outlook Series: Lessons From College Mergers,” attendees explored what drives successful mergers and what challenges institutions should prepare for along the way.
Live polling of more than 150 institutional respondents revealed that roughly 69% have no active merger discussions (or had no direct knowledge of them), about 18% are in early exploration, and only 13% are in active talks or already integrating. These numbers signal that the sector is still early in the adoption curve, though confidentiality concerns may have influenced how some attendees responded.
The message from the webinar was clear. Institutions don’t need to be in financial distress to start this conversation. Three key takeaways emerged.
Successful College Mergers Start With a Clear “Why”
Higher education mergers work better when leaders can articulate a strong reason for pursuing a strategic partnership and remain nimble as conditions evolve. Whether the goal is geographic expansion, programmatic growth, or operational efficiency, that strategic rationale should guide every decision that follows.
Polling data reinforced this point. A strong strategy or “deal thesis” ranked as the second most important factor for facilitating lasting mergers, selected by 45 of 173 respondents. The data suggests many are still in the phase where evaluating the “why” is the critical first step.
A merger is a strategic choice, not solely a last resort. Institutions that define their purpose, business case, and intended value creation early will be better positioned when the right opportunity arises.
Proactive & Reactive Mergers Can Both Succeed
There is a meaningful distinction between proactive mergers, where institutions pursue growth or positioning from a place of strength, and reactive mergers, where external pressures or directives drive the conversation. Both can lead to strong outcomes depending on timing, leverage, and available resources.
Polling responses suggest institutions see the primary challenges less in whether to merge and more in how to navigate integration, resourcing, governance, and regulatory complexity. Resources to execute topped the risk list at 44 responses, followed closely by identity (40), governance integration (38), and regulatory complexity (37).
The takeaway for leaders: proactive exploration now, before the runway narrows, can reduce risk across the board by giving institutions time to address these challenges thoughtfully.
Merger Readiness Is a Leadership Test, Not Just a Transaction
Readiness to pursue a college merger is a leadership capability that requires change management, clear accountability, and dedicated capacity, often sustained over several years.
Polling responses support this concept. A clear execution plan was the top-ranked success factor, chosen by 69 of 173 respondents, well ahead of the other options. At the same time, the nearly even distribution of perceived risks highlights that merger success is a multivariable challenge. Leaders should treat readiness as a portfolio of risks spanning financial, operational, governance, cultural, and regulatory dimensions.
The webinar offered a practical toolkit of questions for boards and cabinets to consider:
- What problem are we solving?
- What can a strategic partner provide that we can’t realistically deliver on our own in the next five years?
- What are our non-negotiables?
- What resources will we set aside?
- Do we have leaders who can make this their focus for the next two years?
How Forvis Mazars Can Help
Forvis Mazars supports institutions navigating strategic partnerships, mergers, and acquisitions. We can help your institution assess readiness, develop a deal thesis, and plan for integration. If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.
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