Why Match Matters in M&A

Mergers and acquisitions might be discussed more frequently among some institutions in higher ed, but they remain difficult endeavors that often come down to fit.

In the latest episode of The Key, Inside Higher Ed’s news and analysis podcast, Colleen Flaherty, Inside Higher Ed’s special content editor, shares data from IHE’s 2026 Survey of College and University Presidents showing that the share of institutions having internal discussion about mergers and acquisitions has remained consistent over several years. Still, a larger share of private nonprofit presidents is engaged in merger talks than their public peers (31 percent versus 12 percent). Presidents also said they are considering mergers or acquisitions as a way to ensure financial stability (58 percent) and optimize resources (55 percent) rather than in response to imminent closure.

According to Marjorie Hass, president of the Council of Independent Colleges, private nonprofit institutions have more independence from state governments over their business strategies than their public-sector peers. “Private institutions have the autonomy to have these kinds of conversations from inside,” she said on The Key. Reflecting the survey results, discussions about mergers and acquisitions have become more common and more strategic among CIC members, she said. “It’s certainly in the air.”

However, mergers in higher ed are more contingent on cultural alignment than partnerships in the corporate sector because colleges are mission driven, she said. “If the choice is between not serving the students in this region that depended on us traditionally or serving them through a merger, that starts to look more attractive … and that means the match has to be better in certain ways,” she said. “We’ve seen many of these conversations wither away and fall apart prior to any formal merger.”

Deals can sputter out because boards can’t fully yield control to the acquiring institution or colleges can’t decide on their athletic division or new mascot. “These cultural pieces run deep in smaller and more mission-centered institutions, and they’re hard to overcome,” she said.

Listen to the full episode here.