An executive with extensive experience in mergers and acquisitions, program development, and accreditation, Steve Healey’s philosophy is to lead institutional transformation through serving others. With a background in strategic planning and organizational development, he has successfully led numerous high-stakes initiatives, driving growth and innovation. Known for his ability to foster collaboration of well-rounded teams, Steve excels in navigating complex business environments and implementing effective solutions. His commitment to excellence and continuous improvement has positioned him as a trusted advisor in the higher education industry. His passion for mentoring future leaders further enhances his impact.
I have guided several universities through the complexities of an acquisition process, and each journey has added to my insight into what it takes to succeed. By combining strong leadership anchored in teamwork and commitment to people, using appropriate professional support, and engaging in effective communication, I have found that success, while not guaranteed, is likely.
In my experience, a successful acquisition will result from focusing on the following factors:
The People
Success begins and ends with people. Prioritizing the well-being of students and employees provides direction, ensures urgency, and strengthens resolve.
Regardless of the circumstances surrounding an acquisition, emotions will run high, and individuals—regardless of their typical stress levels—will experience the strain of change. Employee well-being should be a paramount concern. The stress associated with change can significantly impact mental health, leading to burnout and disengagement just when all-hands-on-deck are required. Senior staff members will likely be working the equivalent of two jobs for a six-to-nine-month period. Work with your board to find ways to take care of them. Each transaction should prioritize the best outcome for students and employees.
Getting good advice about how and when to share the news with students and employees and care for them throughout the acquisition is essential. Acquisition timeframes are determined by an interplay of federal and state regulations and the requirements of regional and professional accreditors. Formal communication requirements focus attention on students and employees because higher education is a student-serving enterprise. They also make transactions complex and multifaceted
Be good to your transaction partners—those on the other side of the table who will eventually acquire the institution or those whose institutions you will acquire. Navigating an acquisition involves making hundreds of micro-agreements; even a single misstep can complicate or derail a deal. Success often hinges on both sides, having leaders committed to discovering a mutually beneficial path forward. Because of that, make it personal. Establish a cycle of daily calls and check-ins. Solve problems one at a time and empower senior leaders to identify and remove obstacles.
Accreditors, state, and federal regulators are not bureaucrats but people with needs and feelings. Engaging them early and often is essential. Seek their insights and guidance. They may not be able to bend the rules, but in my experience, they will assist in navigating complexities and finding pathways. In such transactions, friendships are formed, or existing relationships are deepened. When people are first, goals are common for all stakeholders.
Equally important is self-care. I have learned, sometimes the hard way, that maintaining my well-being is critical. Do what works for you, but do not treat health as optional.
The Purpose
Focusing on meaning and purpose will guide a successful acquisition. Some decisions may be difficult, painful, and lead to disappointment for specific individuals. The most crucial decisions will require confidentiality due to their sensitive nature. That leads to a sense of isolation and loneliness. Keeping the North Star of meaning in view is urgently necessary.
During the transactions I led, reflecting on the university’s mission and the rationale behind the acquisition was invaluable. Each day, I recalled the students and employees and what was at stake for them. This reflection served as a grounding force, provided moral clarity in decision-making, and injected a sense of purpose into communication. Uncertainty is a constant companion during an acquisition. Maintaining composure, calmness, and confidence is not optional. Poise stems from a profound understanding of the institution’s values and a steadfast commitment to upholding them throughout the transition.
Patience is also crucial. By ensuring reasonable transparency while acknowledging the limitations of what could and could not be shared, I have been able to cultivate trust—an essential element for alleviating fears and anxieties, allowing the community to progress together.
The Help
Engaging qualified professional assistance is vital. Depending on your circumstance, this will likely include legal experts, financial advisors, communication professionals, and other advocates—individuals who understand the nuances of the evolving higher education landscape. Accreditation and regulatory deadlines can be demanding, and reliable resources will facilitate navigation through these processes. Strong advisors can help manage debt, keep an eye on unrestricted cash, calculate run rates, liaise with vendors, and help guide completing due diligence. My institutions benefited from multimillion dollar loan reductions, improved repayment terms, and better lease arrangements. Media and press relations have been handled in terms that informed the public while protecting institutional interests and needs. Relationships maintained by board members might very well help tilt the balance in a make-it-or-break-it scenario.
Reflecting on the transactions I led, I am glad I did not have to go through them alone.
The Alignment
One of the most significant challenges during an acquisition is maintaining cohesion among the diverse groups within the university. Board members, faculty, staff, and students possess different perspectives and varying levels of concern regarding the acquisition. Keep all constituencies engaged and supportive, even during limited transparency, will limit public complaints. Consider engaging a communications firm to help.
While the board may focus on high-level discussions, faculty members might feel excluded from critical decision-making processes. It is essential to keep everyone informed and involved without inundating them with details that are not yet finalized. Regular updates, town hall meetings, and smaller group discussions can foster a sense of inclusion. Additionally, providing platforms for faculty and staff to voice their concerns allows leaders to address anxieties directly.
In these instances, it is important to communicate the facts and express empathy and understanding. Acknowledging the challenges and fears of others can strengthen community bonds. Fostering a culture of collaboration and support helps sustain morale, ensuring individuals feel connected to a shared mission, even during uncertain times.
To ensure that deals are made, the typical timeframe accorded university decision processes must be heightened. Timely decision-making is necessary. Some choices may need to be made with limited data. While randomness should be avoided, certainty is frequently elusive. Making good and timely decisions will test your best capacities.
The Landscape
Acquisitions often emerge from a necessity for financial stability, growth, or strategic realignment. As a leader, I have recognized that understanding the financial implications of these situations is paramount. A thorough assessment of the institution’s financial health—including unrestricted cash reserves, revenue streams, accounts payable, and employee obligations—forms the basis for making informed decisions that align with long-term objectives.
Maintaining a clear understanding of the institution’s cash run rate is essential, which indicates the rate at which cash is being utilized over a specific period. This metric provides valuable insights into the sustainability of operations and the capacity to meet obligations, particularly when navigating the transition of an acquisition.
By analyzing these financial elements, leaders can make prompt and well-informed decisions, even in situations where information may be limited. This ability to act decisively, grounded in a comprehensive understanding of the institution’s financial landscape, is an invaluable skill that can significantly influence the success of an acquisition.
A Successful Conclusion
Leading a university through the acquisition process is a grueling and rewarding exercise. Maintaining focus on the why—and getting good support—will augur your success.