Tuesday Morning Learning Opps

University Mergers: How, Why, and Lessons Learned

  • Tuesday, July 24
  • 08:00 AM - 10:00 AM
  • Long Beach Conv Center
  • Level 1, 104A
  • FIN

Speakers

Kerry Rapp

Director of Finance

Jefferson (Philadelphia University + Thomas Jefferson University)

Philadelphia, Pennsylvania

Alfred Salvato

SVP Corporate & Academic Finance and CIO

Thomas Jefferson University

Philadelphia, Pennsylvania

Diane Viacava

Vice President - Senior Credit Officer

Moody's Investor Service

New York, New York

Description

With higher education in a prolonged state of lower revenue growth, a growing number of small, tuition-dependent colleges are under severe stress. Merger and acquisition (M&A) activity among universities has accelerated in the last two years and is likely to become more common in this increasingly competitive and resource-constrained environment. Philadelphia University and Thomas Jefferson University completed a merger when neither institution was in financial stress. Representatives of the two recently combined universities will discuss their independent motivations, decision-making and implementation processes from the merger, and lessons learned. You’ll also learn how Moody’s analyzes credit quality throughout the merger process and views specific credit qualities that make a merger or closure more likely.

Learning Objectives

  • Analyze the risks and benefits of mergers and identify when and how to seek institutional affiliations or mergers.
  • Explore approaches to align governance and management of two culturally different institutions.
  • Review the strategic, financial, and legal steps involved in a merger, including regulatory and accreditation approvals.