Could your charity benefit from our merger assessment service?

How could this service help you?

We have found that many charities would like a quick and cheap way of determining whether a merger is a good way forward before engaging full legal advice/support. To assist with this, we provide a bespoke service and confidential report which includes:

  • Information to equip decision-makers.
  • High level advice on the key legal issues that are likely to arise.
  • An outline of the process ahead, with (where appropriate) suggestions as to how to proceed.

What is involved?

The assessment involves Bates Wells supplying you with a short questionnaire. We analyse your responses and review key documents, such as both organisations’ governing documents, recent accounts, and any preparatory documents which have been drafted summarising the merger proposal.

Each analysis is tailored to your organisation. However, in normal circumstances, our assessment will identify and report on up to 10 or 12 top level issues, including:

  • Whether there are any conflicts between the charitable purposes in the governing documents of the two organisations (as set out in their objects) and if so how such conflicts might be surmounted.
  • Setting out the options as to which entity/entities could be wound up or continue to exist and/or whether a brand new vehicle should be set up. Where appropriate, we make recommendations.
  • Matters relating to the governance structure such as board composition and company law membership (for instance whether one or both organisations are membership organisations with an “association” structure and, if so, what the implications of this would be).
  • The impact of any restrictions which may be imposed on monies held for specific charitable purposes.
  • What (if any) Charity Commission consents are likely to be required.
  • Key employment-related matters such as the effect of recent or upcoming redundancies, and pension scheme membership.
  • Any immediate concerns relating to either organisation’s name or brand.
  • The transfer of properties.
  • Specific issues which you may draw to our attention.

How much does it cost?

The cost of a merger assessment is £750-£1500 plus VAT, depending on the turnover of the organisations being reviewed.

Want to find out more?

For further information, contact Lawrence Simanowitz, Partner, on 02075517796 or [email protected]