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Is There Appetite for Mergers in the Social Enterprise Sector?

The four years since the launch of Breakthrough have seen an unprecedented rise in demand and opportunity for social enterprise. As a consequence, maximising social impact through growth is becoming an important theme. Yet anecdotally few social enterprises are confident to scale up through inorganic routes - like mergers, acquisitions or franchising - through fear of losing or diluting social mission.

Are such concerns well founded or a reflection of the relative immaturity or inexperience of the social enterprise sector.

In the run up to a Breakthrough event on mergers and acquisitions, we polled a snapshot of social enterprise leaders (70+ respondents who were guests to the event) on their appetite and experience of inorganic routes to growth.

• Almost 80% of respondents either strongly agreed or agreed that there should be more mergers in the social enterprise
• Almost 70% didn't have experience of mergers or acquisitions
• There was more appetite for joint ventures and franchising than mergers and acquisitions
• Top reason for considering a merger were to improve / expand services for beneficiaries
• 2^nd & 3^rd reasons for discounting a merger were ‘fears over loss or dilution of social mission'

To read the full report please click here

Posted 3 November 2009

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