July 2026
Observations and insights into consolidation trends among nonprofit institutions.
The USA men’s national team is exceeding expectations and marching through the World Cup draw like it belongs there. I didn’t think I’d care.
I’m not a soccer fan. I don’t know the rules, I detest flopping and I refuse to say pitch, side, match, draw, or use collective nouns and plural verbs. I can’t see how “They hit the post twice in the first half!” qualifies as riveting half-time highlight material.
But, somehow, I’m getting swept up in USA and World Cup fever and finding it to be a compelling sporting event. I had the unusual thrill of cheering on Scotland, where I used to live, and stopped folding my laundry entirely during Argentina’s escape vs. Cape Verde.
Still, the games are long and sometimes it appears that not much is happening; during the USA-Bosnia Herzegovina game-not-match I found my mind wandering to the surprisingly analogous topic of nonprofit mergers and acquisition.
It turns out that the USA’s run at this World Cup (may it continue beyond tonight!) holds a number of important lessons for institutions engaging in mergers and partnerships—and particularly for buyers in these transactions.
To progress at the World Cup, a team-not-side needs three main qualities, which I think can be grouped into the following: a winning plan, a great team and a large dose of perseverance. A successful buyer requires these same elements.
Every manager has a style he wants to play, and an idea of the various skills he needs to obtain. He needs to be able to recruit the right players, a few of whom may be eligible to play for multiple countries. Folarin Balogun (born in Brooklyn on his parents’ vacation) could have chosen to play for England, while Esmir Bajraktarević (born in Appleton, WI, chose to play for B&H. The manager needs both a good plan and a good (sales) pitch.
The first crucial step in considering an acquisition is to define your objectives. What do you need? How would a transaction advance your strategy and mission? Articulating your objectives not only helps you assess potential partners, but will also help your prospective partners see the benefits of joining together with you. You also need a good process to identify, qualify, contact, persuade and reach agreement with the best available partner.
Which brings us to the pitch.
Many potential acquirers are not experienced at acquisitions: they have probably fielded calls from a number of (usually desperate) partners and not gotten very far with them. A better approach, like the national team manager, is to seek out and recruit the players that will fit the team’s style and approach.
In considering an acquisition program, the best way forward is to seek out and recruit partners who can best strengthen your team: look for programs or services, geographies or skills that you don’t currently have but are important to your future success. Many of these organizations will not be “for sale”, so you will need to take great care to approach them in the right way, one that helps them see the benefit of joining with you instead of remaining independent or choosing another partner.
We observe two common approaches used by buyers, neither of which is particularly effective. Some take a tentative, vague “let’s have a chat” approach with not much of an agenda, hoping that some way forward emerges. While the buyer may believe this is a generous, not-being-pushy approach, it rarely leads to success. Often the seller doesn’t know what to ask for, or how; in most cases, a couple of inconclusive meetings leave each party discouraged and nothing happens. A final challenge is that these talks occur between the two people with the most at stake in the outcome of the deal: the leaders of the institutions. It’s very much like asking one goalkeeper to recruit another and having them agree who’s going to start.
The second common approach, no more successful, is to present an overly-prescriptive, “my way or the highway”, specifying transaction structure and terms at the very beginning of the process indicating little appetite for negotiation. Such an organization may try to seem empathetic by including a couple of PowerPoint slides about mission/vision/values (often in a table showing side-by-side how the parties are practically twins separated at birth).
But while a buyer may believe it is being helpful to its (often inexperienced) partner, the partner usually feels like it’s receiving an ultimatum from an inflexible counterparty, and immediately begins to worry about life after the deal closes.
In most cases, the best approach is to provide enough structure to start the conversation with proposed terms but indicate flexibility to adjust based on the needs and wants of the partner. Consider partner’s needs even before you meet them (guess, then confirm with them). Even if you are experienced at transactions, your partner probably isn’t. Bring them along as they learn the ropes; and above all, don’t try to take advantage of their inexperience (because that tactic always comes back to haunt you).
Whatever plan you start out with, and whatever pitch you make, remain flexible to adjust as necessary. Maybe the attractive partners all want a greater voice in governance than you want to offer. Maybe a turnaround looks harder than you expected once you get into due diligence and planning.
Clearly, flexibility is a crucial quality for a winning manager. When Pulisic went down against Paraguay, Pochettino adjusted and set up the “pentagon shape” (whatever that is), and it worked. With Balogun’s red card (regulators often throw curve balls, but that’s a topic for another day), the team focused on defense but didn’t give up the option to strike back (and earned and converted a free kick).
Many coaches will tell you that the hardest part is blending the great players into an effective unit that is better than the sum of its parts. As a buyer, you need to create three teams of all-stars. First is getting your own team-not-side (management, trustees and other stakeholders) on board with the decision to seek a partner, and with the added burdens on their time.
Second, you need to build an effective transaction team. Take the time to honestly assess your strengths and weaknesses as a buyer and improve where you need to. You may find that hiring experts and advisors can fill the gaps in your knowledge and skills. Note that almost no World Cup team has a manager from its own country.
Your transaction team also needs to be structured and operated in the right way. Too often, we encounter advisors who are siloed, with little coordination among attorneys, financial advisors and due diligence specialists. It is imperative that all are involved across the transaction are working together to ensure a successful outcome.
Finally, during the transaction you are also building a future team with the seller. They will be constantly assessing whether they want to partner with you based on how they are treated during the deal process. A well-organized process, responsive transaction team and open communication will help build confidence in post-transaction teamwork.
This doesn’t mean that you should not focus on the deal terms and negotiate strongly for crucial points. Balance the seller’s feelings now against having the deal details as beneficial as possible. The old cliché that “we’ll never look at the documents again” is not good business. Both sides need to agree and be satisfied as to their rights and responsibilities.
Playing in the World Cup is hard on players. They play 38-ish league games plus other competitions during the season, running 6-8 miles per game. Summer is supposed to be for rest and recovery. Instead, the players sign up for even more punishment.
According to commentators, the notion of “suffering” is built into the ethos of the game. One feels that one must suffer in order to deserve to win. This idea was front and center in the USA-BH game after Balogun was ejected-not-sent-off. The USA suffered through another 26 minutes plus 10 minutes of extra time to win.
Deal fatigue is an ever-present danger. Tempers get short. Board members get nervous. Deal points become contentious. Due diligence will uncover unpleasant surprises. You will find people on the other side that you just don’t like (and vice versa).
You need a well-structured, efficient process to get through the transaction as quickly as possible so you can get past closing and into the work of building a better institution.
The USA will definitely “suffer” through tonight’s match—er, game (am I becoming a fan?)—but with a winning plan, a strong team and perseverance, they just might advance to suffer some more.
If nonprofit buyers exhibit these same attributes, they will be on their way to successful acquisitions and brighter futures.
I may yet learn to become a soccer-not-football fan—at least until training camps open.
Note: the opinions given in this piece are not necessarily those of ArchGate Partners or of its other partners or employees.
Thoughts? Feedback? Ideas you’d like us to explore in future Insights? Let us know at info@archgatepartners.com.
