Joining forces to beat the competition
Business schools may not have their shares listed on public stock exchanges but they are still businesses, even if many shelter under the wing of a university. When they merge, the language used and rationales offered are strikingly similar to those that accompany big corporate M&A announcements.
As with conventional companies, business schools have owners and leaders who may feel the school would fare better if it were bigger or its product range wider, or even that it should have a new owner. Similarly there are stakeholders whose attitudes will be crucial.
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The main asset of two investment banks or advertising agencies that plan to merge will be its employees, who can walk out of the door if they do not like the new set-up. In business schools, the key asset and most precious resource is faculty.
Although there are many reasons why business schools merge, the quest for critical mass in a competitive market is paramount
