July 23, 2025 • 22 mins
Navigating nonprofit mergers requires strategic vision, cultural alignment, and unwavering focus on mission. Diane Beastrom, consultant and former CEO of Koinonia, takes us behind the scenes of a successful merger that dramatically expanded services for people with developmental disabilities.
After leading Koinonia for decades and orchestrating several acquisitions, Diane faced a pivotal decision: despite emerging from COVID in a position of strength, the organization needed to expand behavioral health and mental health services. "Going alone was not going to be the best way for the people we support or for our employees," she explains. This realization led to seeking a larger partner already delivering these specialized services.
The merger between Koinonia and Boundless demonstrates how thoughtful integration can benefit everyone involved. All Koinonia employees were retained and immediately received enhanced benefits and compensation. Clients gained access to expanded behavioral health supports and a beautiful new day center. Behind these successes were careful attention to cultural compatibility, transparent communication about leadership transitions, and early resolution of potential sticking points like board composition and organizational naming.
Diane offers invaluable guidance for nonprofit executives contemplating similar moves: engage specialized consultants early, prepare your Board thoroughly, and shift perspective from "what are we giving up?" to the expanded mission impact possible through strategic partnerships. Her refreshing take on legacy reminds us that organizational names and buildings matter less than sustainable services to those who need it most.
Whether you're leading a nonprofit considering strategic partnerships or simply interested in how mission-driven organizations evolve to meet changing needs, this conversation offers practical wisdom from someone who's successfully navigated the complex terrain of nonprofit mergers.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
Boundless' mission is building a world that realizes
the boundless potential of allpeople.
In recognition of that missionand the fact that we can't do it
alone, we are closing thisyear's podcast season with a
three-part series on mergers,acquisitions and partnerships
and how they improve ourservices.
Welcome everyone.
I'm your host, scott Light.
So today we are talking withDiane Bistrom, whose very title
(00:29):
gives you a hint at her deep,deep expertise.
She's a consultant and formerlythe VP of Transition.
I love that title, diane.
Welcome to the podcast.
Thanks, scott, good to be here.
I also have a list of some keyfactors that contribute to
successful collaborations.
We're going to talk about thatas well in just a little bit.
But, diane, let's step back intime a little bit.
(00:50):
We're going to jump in theWayback Machine here and let's
talk about your role when youwere CEO of Koinonia.
So before Koinonia became partof the Boundless family, what
was the mission there?
Speaker 2 (01:02):
Koinonia's mission was to partner with people who
have developmental disabilitiesand other complex conditions so
that they could have full livesin the community through
integrated whole person care.
So we were focused on the wholeperson and for them to have
their best life.
Speaker 1 (01:19):
I asked you, before we started recording, what that
word meant.
You said it's a Greek word.
Speaker 2 (01:25):
It is Koinonia is Greek and it means community
fellowship and integrated careand interdependence.
Speaker 1 (01:32):
Okay, did you come up with that, or was the company
already named that when you cameaboard?
Speaker 2 (01:36):
No, it was already named Koinonia.
Speaker 1 (01:39):
Okay, let's talk a little bit more about services.
You talked about that in abroad scope, but let's go into
the services that were providedby Koinonia, and then let me
layer onto that.
What was the culture like?
Speaker 2 (01:51):
So from the very beginning, Koinonia started
predominantly with residentialservices, but they were all
community-based.
There were homes in thecommunity you would drive by
them and you would notdistinguish them from any other
neighbor them and you would notdistinguish them from any other
neighbor.
And we expanded those into awhole variety of these homes
throughout Cuyahoga County,provided supported living
(02:12):
services, vocational dayservices, employment, and later
developed transportation andsome other services.
Speaker 1 (02:21):
Okay, and do you want to talk about the culture a
little bit?
Speaker 2 (02:24):
Koinonia's culture from the very beginning was that
of being innovative andactually a pioneer.
Koinonia started when theservices that we ended up
providing and that still existtoday were not commonplace.
People with developmentaldisabilities had very few
options if they needed somesupport or out-of-home placement
(02:45):
, and so innovation and being apioneer to develop what doesn't
yet exist but could exist wasreally at the foundation, and
we've done that through aculture of teamwork and
transparency and, you know,really trying to listen to our
(03:05):
customers to see what they andtheir families wanted and how we
might help answer that need forthem.
Speaker 1 (03:12):
It's been interesting with this three-part series
that I mentioned, because all ofthe experts that we have had on
come back to several keyattributes.
But transparency andcommunication boy, those are
just key, and I know we're goingto talk about both those things
as we go here.
Let me ask you a why?
Kind of question here what weresome of the reasons you were
looking for a merger partner andwhat attributes were you
(03:36):
seeking from that potentialpartner?
Speaker 2 (03:38):
Well, to answer that, I really need to start with.
A merger and acquisition wasnot new to Koinonia.
I had less six or seven ofthose over the decades that I
was the CEO with Koinonia.
Those were really different,though.
Those were where we identifiedagencies or they actually sought
me out to become part ofKoinonia, and that was to expand
(03:59):
and grow our services and to beable to collaborate and be able
to provide services moreefficiently.
With Boneless it was reallydifferent.
You know, koinonia came out ofCOVID strong, although different
, very different than we werepre-COVID, and we had a very
robust strategic plan and whilewe were very happy and intended
(04:23):
to continue our residentialservices and the day and
vocational, all of those thingsthat I mentioned, we were
looking at the people that weserved and we knew they needed
more that was not necessarilyeasily accessible in the
community, that was tailored topeople with developmental
disabilities.
So we were looking to grow ourservices and expand into
(04:44):
behavioral health and mentalhealth and, you know, physical
care and all that kind of thing,and after trying several things
, we realized that you know,organic growth is really slow,
it can be very expensive andthere's nothing certain about if
you actually will achieve theoutcomes that you're looking to
do and do, and there is asaturation of providers, not
(05:07):
only in Ohio but across thecountry, and we just knew that
going alone was not going to begoing the best way for the
people that we support or forour employees, to be honest, and
so we came to the realizationthat, rather than bringing on
smaller organizations to be partof Koinonia, we needed to
change the conversation, wherewe were seeking out a partner
(05:30):
that would be larger than we are, that are already invested in,
committed and doing some of thethings that we had hoped to
develop and grow that way toexpand and fulfill our mission.
Speaker 1 (05:42):
Interesting, all right.
So let's talk about those keyelements that I kind of teased
at the top here.
So I was looking at nonprofittimes and they said several
things here.
But successful collaborationneeds strong leadership, needs,
buy-in, needs, that vision forthe future, and you've touched
on that a little bit and thearticle pointed to six key
considerations and they go likethis Mission alignment, clear
(06:04):
communication he talked aboutthat honesty, what defines
success, the financial and legalimplications, and then ongoing
governance and transparentdecision-making processes.
So when you think about thosesix factors and again you've
organically already hit onseveral of them what were some
of the key questions that neededto be answered before Boundless
(06:27):
and Koinonia could move forwardtogether?
Speaker 2 (06:30):
That list of the six considerations is so fundamental
, and it's so true that we knewand learned this through some
earlier mergers that we neededto find alignment in our culture
, because everything else canlook great, but if you can't see
yourselves working together, ifyou don't have similar goals
(06:52):
and approaches andconsiderations for the people
you serve and the staff thatwork there, it's going to be an
uphill battle all the way.
So culture was something Ilearned very early on that there
needs to be that alignment.
Culture is very difficult toshift and a lot of times there's
very high resistance to it.
(07:12):
So that was one thing that Iwas looking for.
I was looking for anorganization that in itself was
stable and strong, greatreputation and that, as I
mentioned, was already doingsome of the things that we were
trying to do or had started todo that we could help contribute
to, but where they could alsothen invest in the people that
(07:36):
we were serving in a differentpart of Ohio.
Speaker 1 (07:39):
Interesting.
Let me flip that question.
Would you mind sharing maybe asticking point or two and then
how those things were resolved?
Speaker 2 (07:48):
can sound like a very dangerous word, so you have to
get over that.
Considering a merger doesn'tmean that somehow you failed or
(08:10):
that you're betraying yourorganization, and you need to
just get right with that andfeel real comfortable with it.
Another thing, though, is youhave to really look at why am I
doing it?
Am I doing it for the rightreasons?
Your board has to be inalignment and has to be
supportive.
I was very fortunate because myboard, having gone through
(08:31):
several strategic plans together, we've had this conversation.
We had done some research andso forth about what is the lay
of the land and going forward,and so they were really
supportive.
The sticking points that oftenmake a deal conversation fail is
what will be the boardcomposition, what happens to the
(08:53):
board that's being merged intothe organization, who will be
the executive leader and whatwill happen to the
organization's name.
So we knew the answers to thoseright up front.
We knew that I was not going tobe the CEO, I knew that Coinio
was not going to be theorganization's name, and we
(09:14):
worked with Boundless to ensurethat at least a couple of our
board members had a very smallboard, could come forward and
join the Boundless board.
So often those are stickingpoints that don't get addressed
up front, and we were able totalk about that at the very
beginning.
So that kind of cleared the aira little bit to talk about
(09:36):
other things.
Speaker 1 (09:36):
Let me layer on to sticking point with the word
surprise.
Was there a surprise or twothat maybe you didn't see coming
around the corner?
Speaker 2 (09:46):
I think a surprise can be that it's very easy, with
all the best planning that youhave, to underestimate the
amount of work that is involvedin actually integrating.
You know the hard work startsafter you've signed the papers
and identified the date that yougo forward as a joint
(10:08):
organization.
So there is a lot of work.
We, I think, maybe thought thatsome integration elements might
be easier because maybe we hadshared software, we used the
same vendors and those sorts ofthings, and you know, none of
our organizations areoverstaffed at any point in time
(10:30):
, and so people have tomultitask and have time
dedicated to do the theintegration work while they're
also doing their other job.
So as much as we thought aboutthat and talked about it, I
think that we were perhapscaught off guard at times of
okay, this is going to take alittle longer, maybe this is
going to go in a differentsequence than maybe we had
(10:51):
originally had hoped.
Speaker 1 (10:53):
Okay, when was the merger final?
Speaker 2 (10:55):
October 1st 2023.
Speaker 1 (10:57):
Got it.
Let me ask you this what weresome maybe I'll call them
special practices services orattributes that you believe
Koinonia then brought toBoundless?
Speaker 2 (11:07):
Koinonia brought to Boundless several things that I
think were very valuable.
One is we had over 40 years ofpresence and experience in
Northeast Ohio, specificallyCuyahoga, but some surrounding
counties Boundless didn't have abig presence there.
We had a very strong reputationfor the services that we
(11:28):
provided.
We had some really greatemployees and key managers and
leaders, and that adds value.
That's not on the balance sheetright, so I think that helped
fill some gaps perhaps thatBoundless was dealing with,
because we all had, you know,positions that needed to be
(11:50):
filled.
I think that we brought toBoundless a shared, you know,
interest and appetite forinnovation and thinking of
things in a new way.
So I think that those are someareas where we could add value
by bringing the energy to keepit going, and they did not need
(12:14):
to bring us along.
We were ready.
Speaker 1 (12:17):
We were ready to go.
You mentioned your people andhaving some great people just up
and down the entire chain, theentire ladder right there.
Let me ask you about that whatbenefits do you think were
realized by the staff and alsoby people served since then,
since the merger?
Speaker 2 (12:33):
We knew right away through the due diligence
process that the employees weregoing to see a substantial
benefit as a result of thismerger size and other
particulars.
Boundless had a richer benefitplan and their medical insurance
(12:54):
and their pay scale and thosesorts of things that the former
Koinonia employees immediatelybenefited from, and that was
something that was reallyimportant.
You know, it was reallyimportant that this is not
typical, but all Quintinianemployees were brought forward.
That doesn't always happen in amerger, but it also shows that
(13:14):
we covered a different territory.
People's jobs were importantand needed, and so they all came
forward For the people that weserve.
We were very clear withBoundless that what we were
looking for in terms ofespecially the behavior supports
and the mental health services,there was something that we had
started and we had put in placebut had not really expanded it
(13:36):
yet, and that we were reallylooking for that, and they were
able to bring that to bear.
They had some expertise andsome new ways of providing
services and alternate billingand funding.
That was very valuable.
And then, more recently, wejust opened a state-of-the-art,
beautiful day center for peoplewho are looking for day services
(14:01):
and that just opened recently.
So people are benefiting fromthis really beautiful
environment and robust services.
Speaker 1 (14:08):
Let's bring it to present day.
I've mentioned this three-partseries several times here and in
each one we've talked aboutreally there's some tumult out
there in terms of funding and inthis M&A world that is not just
in the nonprofit world, but islargely happening in the public
(14:29):
and private sector too.
Given the uncertainty,especially when we're talking
about federal and stateregulatory agencies, we're
talking about the fundinglandscape what's your best
advice to organizations that maybe considering a merger?
Speaker 2 (14:45):
Then I think they're being very brave and wise if
they're actually considering it.
My biggest concern is withthose who aren't considering it
and just think we're just goingto go it alone and we'll just
kind of push the system.
We hear about Medicaid all thetime.
(15:18):
It's the safety net but it comeswith a price that doesn't have
the ability to forever expand.
So I think those that areconsidering it I really give
them kudos for doing that it'simportant, in my opinion, to get
the right consultant very earlyon.
That was something I did and Iwas really glad that I did A
consultant that knows mergeracquisitions, especially in the
(15:39):
nonprofit social service sector,and that really knows the
providers across the country,Because you may or may not end
up merging with an organizationthat's home-based is Ohio.
So kind of casting a broad netand have that consultant help
(16:02):
guide you through the processwhat to expect, how to interpret
some of the things that you'reexperiencing and so forth.
But those who are consideringmergers really need to do a lot
of work with their board so thatthey understand, they support
it, they understand what itwould mean and there is a really
(16:23):
clear value that they perceivebecause too often, even getting
into the merger conversation,there's a focus on what are we
giving up, what are we losingOnly seeing kind of the debit
column.
And yes, there are some thingsthat need to change, but if
you're finding the right partnerand doing it for the right
(16:43):
reason, the positives reallywill outweigh that significantly
.
Speaker 1 (16:48):
You mentioned the word partner.
Let me expand it topartnerships.
Can the right consultant orconsultants are they good to
bring in to help vet a goodpartnership?
A good partnership.
Speaker 2 (17:00):
Absolutely, and that's exactly what I did.
And it just so happens in ourcase which also may not be
typical that both Boundless andKoinonia shared the same
consultant only because we hadprior relationships with her and
she knew both of ourorganizations.
We trusted her and werecomfortable with that kind of
shared representation, so tospeak.
(17:21):
But that is what they will helpyou do.
They'll help identify who theybelieve would be a good partner.
They can start some of theanonymous early conversations to
see if there's a fit and againguide through the process.
Speaker 1 (17:35):
Let me ask you about legacy, about nonprofits are
looked at as just doing goodwork, doing terrific altruistic
work out there.
How do you preserve thosethings again in this world that
we're living in, where sometimesyou got to get bigger, You've
(17:55):
got to come to the major leagues, so to speak?
Speaker 2 (17:57):
Yeah, Legacy is really important because
nonprofit work is really basedon.
You know legacy is reallyimportant because you know
nonprofit work is really basedon.
You know we all need to besuper committed to the mission
and what is the work and youknow, often that's what helps
drive people forward.
Legacy takes a lot of shapesand forms.
It doesn't have to be abuilding, it doesn't have to be
(18:21):
an organizational name, itdoesn't have to be so.
You know legacy is who.
I think also, who do we investin and how do we invest in them?
You know a legacy that has aparticular set of board members
or that has a building with aparticular name on it.
You know we went through, wehad our name on a building that
our office was in and it neededto come down at a point in time
(18:41):
and there was a little feelingsaround that.
But it was an important move,you know, and we were ready for
it because we knew that we werebecoming this new organization.
So legacy, I think, comes inthe preservation and the
expansion of your mission andwe're here to serve people.
How do we serve more peoplebetter in the ways that they
want to be served?
(19:02):
And often, you know, doing thatin a combined fashion is the
best and actually fastest routethere.
Speaker 1 (19:08):
One of the things that we always try to think
about is who's listening to ourepisodes?
And I want to close with aquestion like this, because,
again, you're such a seasonednonprofit executive huge, broad
range of experience andexpertise and I'm thinking if
there's, let's just say, a youngnonprofit executive huge, broad
range of experience andexpertise and I'm thinking if
there's, let's just say, a youngnonprofit executive and they're
looking for just someone-on-one advice from somebody
(19:31):
like you, what is thatone-on-one that you would say
that young executive in this dayand age when it comes to
managing and maybe growing theirnonprofit?
Speaker 2 (19:44):
I think the young executive needs to really always
be clear and centered about howthey perceive their job, what
they think they're there for andwho their customer really is.
The executive is there to serveits staff.
I always perceive my staff asmy customer.
(20:06):
The people that received ourservices were then their
customers.
And then we have the communityand we have other stakeholders
and we have funders.
What do people want, what dopeople need?
And I kind of grew up with aservant leadership kind of
approach that take a position ofservice, take a position of
(20:29):
looking externally rather thaninternally first and hopefully
that North Star can help guidedecisions that are going to be
very difficult at times and, youknow, maybe first time, having
to think through.
Seek outside support.
Find a mentor it could beinformal, it doesn't have to be
a paid consultant and you know.
(20:50):
Find someone that you can justtalk to openly and, you know,
feel confident that there's, youknow, confidentiality with it.
And seek out a variety ofpeople because there are a lot
of perspectives and there's alot of experience there.
And just expose yourself totrade associations where you can
(21:11):
get involved.
Don't just look within yourorganization, because there are
so many people that really aregenerous and wanting to help and
want to support and want to seeother people be successful.
We need to bring each other up.
Speaker 1 (21:23):
Yep, this is a fascinating conversation.
Hopefully, for our listeners,it lifted the curtain on what we
do, what nonprofits do and,broadly, what we can all do to
increase the impact on people,for people and the communities
that we all serve.
Diane, thanks so much forjoining us.
Speaker 2 (21:39):
Thank you.
Speaker 1 (21:40):
We hope you enjoyed this three-part series on
nonprofit mergers andacquisitions.
Next season we will, of course,offer further thoughts on
nonprofit leadership, just as awhole the whole picture out
there when it comes toleadership for nonprofits.
So join us to learn from ourexperiences and from other
dynamic leaders out there, aswell, as always, to our
(22:02):
listeners.
We thank you for joining us.
This is the Nonprofit Leader'sGuide podcast brought to you by
Boundless.
Boundless' mission is building a world that realizes
the boundless potential of allpeople.
In recognition of that missionand the fact that we can't do it
alone, we are closing thisyear's podcast season with a
three-part series on mergers,acquisitions and partnerships
and how they improve ourservices.
Welcome everyone.
I'm your host, scott Light.
So today we are talking withDiane Bistrom, whose very title
(00:29):
gives you a hint at her deep,deep expertise.
She's a consultant and formerlythe VP of Transition.
I love that title, diane.
Welcome to the podcast.
Thanks, scott, good to be here.
I also have a list of some keyfactors that contribute to
successful collaborations.
We're going to talk about thatas well in just a little bit.
But, diane, let's step back intime a little bit.
(00:50):
We're going to jump in theWayback Machine here and let's
talk about your role when youwere CEO of Koinonia.
So before Koinonia became partof the Boundless family, what
was the mission there?
Speaker 2 (01:02):
Koinonia's mission was to partner with people who
have developmental disabilitiesand other complex conditions so
that they could have full livesin the community through
integrated whole person care.
So we were focused on the wholeperson and for them to have
their best life.
Speaker 1 (01:19):
I asked you, before we started recording, what that
word meant.
You said it's a Greek word.
Speaker 2 (01:25):
It is Koinonia is Greek and it means community
fellowship and integrated careand interdependence.
Speaker 1 (01:32):
Okay, did you come up with that, or was the company
already named that when you cameaboard?
Speaker 2 (01:36):
No, it was already named Koinonia.
Speaker 1 (01:39):
Okay, let's talk a little bit more about services.
You talked about that in abroad scope, but let's go into
the services that were providedby Koinonia, and then let me
layer onto that.
What was the culture like?
Speaker 2 (01:51):
So from the very beginning, Koinonia started
predominantly with residentialservices, but they were all
community-based.
There were homes in thecommunity you would drive by
them and you would notdistinguish them from any other
neighbor them and you would notdistinguish them from any other
neighbor.
And we expanded those into awhole variety of these homes
throughout Cuyahoga County,provided supported living
(02:12):
services, vocational dayservices, employment, and later
developed transportation andsome other services.
Speaker 1 (02:21):
Okay, and do you want to talk about the culture a
little bit?
Speaker 2 (02:24):
Koinonia's culture from the very beginning was that
of being innovative andactually a pioneer.
Koinonia started when theservices that we ended up
providing and that still existtoday were not commonplace.
People with developmentaldisabilities had very few
options if they needed somesupport or out-of-home placement
(02:45):
, and so innovation and being apioneer to develop what doesn't
yet exist but could exist wasreally at the foundation, and
we've done that through aculture of teamwork and
transparency and, you know,really trying to listen to our
(03:05):
customers to see what they andtheir families wanted and how we
might help answer that need forthem.
Speaker 1 (03:12):
It's been interesting with this three-part series
that I mentioned, because all ofthe experts that we have had on
come back to several keyattributes.
But transparency andcommunication boy, those are
just key, and I know we're goingto talk about both those things
as we go here.
Let me ask you a why?
Kind of question here what weresome of the reasons you were
looking for a merger partner andwhat attributes were you
(03:36):
seeking from that potentialpartner?
Speaker 2 (03:38):
Well, to answer that, I really need to start with.
A merger and acquisition wasnot new to Koinonia.
I had less six or seven ofthose over the decades that I
was the CEO with Koinonia.
Those were really different,though.
Those were where we identifiedagencies or they actually sought
me out to become part ofKoinonia, and that was to expand
(03:59):
and grow our services and to beable to collaborate and be able
to provide services moreefficiently.
With Boneless it was reallydifferent.
You know, koinonia came out ofCOVID strong, although different
, very different than we werepre-COVID, and we had a very
robust strategic plan and whilewe were very happy and intended
(04:23):
to continue our residentialservices and the day and
vocational, all of those thingsthat I mentioned, we were
looking at the people that weserved and we knew they needed
more that was not necessarilyeasily accessible in the
community, that was tailored topeople with developmental
disabilities.
So we were looking to grow ourservices and expand into
(04:44):
behavioral health and mentalhealth and, you know, physical
care and all that kind of thing,and after trying several things
, we realized that you know,organic growth is really slow,
it can be very expensive andthere's nothing certain about if
you actually will achieve theoutcomes that you're looking to
do and do, and there is asaturation of providers, not
(05:07):
only in Ohio but across thecountry, and we just knew that
going alone was not going to begoing the best way for the
people that we support or forour employees, to be honest, and
so we came to the realizationthat, rather than bringing on
smaller organizations to be partof Koinonia, we needed to
change the conversation, wherewe were seeking out a partner
(05:30):
that would be larger than we are, that are already invested in,
committed and doing some of thethings that we had hoped to
develop and grow that way toexpand and fulfill our mission.
Speaker 1 (05:42):
Interesting, all right.
So let's talk about those keyelements that I kind of teased
at the top here.
So I was looking at nonprofittimes and they said several
things here.
But successful collaborationneeds strong leadership, needs,
buy-in, needs, that vision forthe future, and you've touched
on that a little bit and thearticle pointed to six key
considerations and they go likethis Mission alignment, clear
(06:04):
communication he talked aboutthat honesty, what defines
success, the financial and legalimplications, and then ongoing
governance and transparentdecision-making processes.
So when you think about thosesix factors and again you've
organically already hit onseveral of them what were some
of the key questions that neededto be answered before Boundless
(06:27):
and Koinonia could move forwardtogether?
Speaker 2 (06:30):
That list of the six considerations is so fundamental
, and it's so true that we knewand learned this through some
earlier mergers that we neededto find alignment in our culture
, because everything else canlook great, but if you can't see
yourselves working together, ifyou don't have similar goals
(06:52):
and approaches andconsiderations for the people
you serve and the staff thatwork there, it's going to be an
uphill battle all the way.
So culture was something Ilearned very early on that there
needs to be that alignment.
Culture is very difficult toshift and a lot of times there's
very high resistance to it.
(07:12):
So that was one thing that Iwas looking for.
I was looking for anorganization that in itself was
stable and strong, greatreputation and that, as I
mentioned, was already doingsome of the things that we were
trying to do or had started todo that we could help contribute
to, but where they could alsothen invest in the people that
(07:36):
we were serving in a differentpart of Ohio.
Speaker 1 (07:39):
Interesting.
Let me flip that question.
Would you mind sharing maybe asticking point or two and then
how those things were resolved?
Speaker 2 (07:48):
can sound like a very dangerous word, so you have to
get over that.
Considering a merger doesn'tmean that somehow you failed or
(08:10):
that you're betraying yourorganization, and you need to
just get right with that andfeel real comfortable with it.
Another thing, though, is youhave to really look at why am I
doing it?
Am I doing it for the rightreasons?
Your board has to be inalignment and has to be
supportive.
I was very fortunate because myboard, having gone through
(08:31):
several strategic plans together, we've had this conversation.
We had done some research andso forth about what is the lay
of the land and going forward,and so they were really
supportive.
The sticking points that oftenmake a deal conversation fail is
what will be the boardcomposition, what happens to the
(08:53):
board that's being merged intothe organization, who will be
the executive leader and whatwill happen to the
organization's name.
So we knew the answers to thoseright up front.
We knew that I was not going tobe the CEO, I knew that Coinio
was not going to be theorganization's name, and we
(09:14):
worked with Boundless to ensurethat at least a couple of our
board members had a very smallboard, could come forward and
join the Boundless board.
So often those are stickingpoints that don't get addressed
up front, and we were able totalk about that at the very
beginning.
So that kind of cleared the aira little bit to talk about
(09:36):
other things.
Speaker 1 (09:36):
Let me layer on to sticking point with the word
surprise.
Was there a surprise or twothat maybe you didn't see coming
around the corner?
Speaker 2 (09:46):
I think a surprise can be that it's very easy, with
all the best planning that youhave, to underestimate the
amount of work that is involvedin actually integrating.
You know the hard work startsafter you've signed the papers
and identified the date that yougo forward as a joint
(10:08):
organization.
So there is a lot of work.
We, I think, maybe thought thatsome integration elements might
be easier because maybe we hadshared software, we used the
same vendors and those sorts ofthings, and you know, none of
our organizations areoverstaffed at any point in time
(10:30):
, and so people have tomultitask and have time
dedicated to do the theintegration work while they're
also doing their other job.
So as much as we thought aboutthat and talked about it, I
think that we were perhapscaught off guard at times of
okay, this is going to take alittle longer, maybe this is
going to go in a differentsequence than maybe we had
(10:51):
originally had hoped.
Speaker 1 (10:53):
Okay, when was the merger final?
Speaker 2 (10:55):
October 1st 2023.
Speaker 1 (10:57):
Got it.
Let me ask you this what weresome maybe I'll call them
special practices services orattributes that you believe
Koinonia then brought toBoundless?
Speaker 2 (11:07):
Koinonia brought to Boundless several things that I
think were very valuable.
One is we had over 40 years ofpresence and experience in
Northeast Ohio, specificallyCuyahoga, but some surrounding
counties Boundless didn't have abig presence there.
We had a very strong reputationfor the services that we
(11:28):
provided.
We had some really greatemployees and key managers and
leaders, and that adds value.
That's not on the balance sheetright, so I think that helped
fill some gaps perhaps thatBoundless was dealing with,
because we all had, you know,positions that needed to be
(11:50):
filled.
I think that we brought toBoundless a shared, you know,
interest and appetite forinnovation and thinking of
things in a new way.
So I think that those are someareas where we could add value
by bringing the energy to keepit going, and they did not need
(12:14):
to bring us along.
We were ready.
Speaker 1 (12:17):
We were ready to go.
You mentioned your people andhaving some great people just up
and down the entire chain, theentire ladder right there.
Let me ask you about that whatbenefits do you think were
realized by the staff and alsoby people served since then,
since the merger?
Speaker 2 (12:33):
We knew right away through the due diligence
process that the employees weregoing to see a substantial
benefit as a result of thismerger size and other
particulars.
Boundless had a richer benefitplan and their medical insurance
(12:54):
and their pay scale and thosesorts of things that the former
Koinonia employees immediatelybenefited from, and that was
something that was reallyimportant.
You know, it was reallyimportant that this is not
typical, but all Quintinianemployees were brought forward.
That doesn't always happen in amerger, but it also shows that
(13:14):
we covered a different territory.
People's jobs were importantand needed, and so they all came
forward For the people that weserve.
We were very clear withBoundless that what we were
looking for in terms ofespecially the behavior supports
and the mental health services,there was something that we had
started and we had put in placebut had not really expanded it
(13:36):
yet, and that we were reallylooking for that, and they were
able to bring that to bear.
They had some expertise andsome new ways of providing
services and alternate billingand funding.
That was very valuable.
And then, more recently, wejust opened a state-of-the-art,
beautiful day center for peoplewho are looking for day services
(14:01):
and that just opened recently.
So people are benefiting fromthis really beautiful
environment and robust services.
Speaker 1 (14:08):
Let's bring it to present day.
I've mentioned this three-partseries several times here and in
each one we've talked aboutreally there's some tumult out
there in terms of funding and inthis M&A world that is not just
in the nonprofit world, but islargely happening in the public
(14:29):
and private sector too.
Given the uncertainty,especially when we're talking
about federal and stateregulatory agencies, we're
talking about the fundinglandscape what's your best
advice to organizations that maybe considering a merger?
Speaker 2 (14:45):
Then I think they're being very brave and wise if
they're actually considering it.
My biggest concern is withthose who aren't considering it
and just think we're just goingto go it alone and we'll just
kind of push the system.
We hear about Medicaid all thetime.
(15:18):
It's the safety net but it comeswith a price that doesn't have
the ability to forever expand.
So I think those that areconsidering it I really give
them kudos for doing that it'simportant, in my opinion, to get
the right consultant very earlyon.
That was something I did and Iwas really glad that I did A
consultant that knows mergeracquisitions, especially in the
(15:39):
nonprofit social service sector,and that really knows the
providers across the country,Because you may or may not end
up merging with an organizationthat's home-based is Ohio.
So kind of casting a broad netand have that consultant help
(16:02):
guide you through the processwhat to expect, how to interpret
some of the things that you'reexperiencing and so forth.
But those who are consideringmergers really need to do a lot
of work with their board so thatthey understand, they support
it, they understand what itwould mean and there is a really
(16:23):
clear value that they perceivebecause too often, even getting
into the merger conversation,there's a focus on what are we
giving up, what are we losingOnly seeing kind of the debit
column.
And yes, there are some thingsthat need to change, but if
you're finding the right partnerand doing it for the right
(16:43):
reason, the positives reallywill outweigh that significantly
.
Speaker 1 (16:48):
You mentioned the word partner.
Let me expand it topartnerships.
Can the right consultant orconsultants are they good to
bring in to help vet a goodpartnership?
A good partnership.
Speaker 2 (17:00):
Absolutely, and that's exactly what I did.
And it just so happens in ourcase which also may not be
typical that both Boundless andKoinonia shared the same
consultant only because we hadprior relationships with her and
she knew both of ourorganizations.
We trusted her and werecomfortable with that kind of
shared representation, so tospeak.
(17:21):
But that is what they will helpyou do.
They'll help identify who theybelieve would be a good partner.
They can start some of theanonymous early conversations to
see if there's a fit and againguide through the process.
Speaker 1 (17:35):
Let me ask you about legacy, about nonprofits are
looked at as just doing goodwork, doing terrific altruistic
work out there.
How do you preserve thosethings again in this world that
we're living in, where sometimesyou got to get bigger, You've
(17:55):
got to come to the major leagues, so to speak?
Speaker 2 (17:57):
Yeah, Legacy is really important because
nonprofit work is really basedon.
You know legacy is reallyimportant because you know
nonprofit work is really basedon.
You know we all need to besuper committed to the mission
and what is the work and youknow, often that's what helps
drive people forward.
Legacy takes a lot of shapesand forms.
It doesn't have to be abuilding, it doesn't have to be
(18:21):
an organizational name, itdoesn't have to be so.
You know legacy is who.
I think also, who do we investin and how do we invest in them?
You know a legacy that has aparticular set of board members
or that has a building with aparticular name on it.
You know we went through, wehad our name on a building that
our office was in and it neededto come down at a point in time
(18:41):
and there was a little feelingsaround that.
But it was an important move,you know, and we were ready for
it because we knew that we werebecoming this new organization.
So legacy, I think, comes inthe preservation and the
expansion of your mission andwe're here to serve people.
How do we serve more peoplebetter in the ways that they
want to be served?
(19:02):
And often, you know, doing thatin a combined fashion is the
best and actually fastest routethere.
Speaker 1 (19:08):
One of the things that we always try to think
about is who's listening to ourepisodes?
And I want to close with aquestion like this, because,
again, you're such a seasonednonprofit executive huge, broad
range of experience andexpertise and I'm thinking if
there's, let's just say, a youngnonprofit executive huge, broad
range of experience andexpertise and I'm thinking if
there's, let's just say, a youngnonprofit executive and they're
looking for just someone-on-one advice from somebody
(19:31):
like you, what is thatone-on-one that you would say
that young executive in this dayand age when it comes to
managing and maybe growing theirnonprofit?
Speaker 2 (19:44):
I think the young executive needs to really always
be clear and centered about howthey perceive their job, what
they think they're there for andwho their customer really is.
The executive is there to serveits staff.
I always perceive my staff asmy customer.
(20:06):
The people that received ourservices were then their
customers.
And then we have the communityand we have other stakeholders
and we have funders.
What do people want, what dopeople need?
And I kind of grew up with aservant leadership kind of
approach that take a position ofservice, take a position of
(20:29):
looking externally rather thaninternally first and hopefully
that North Star can help guidedecisions that are going to be
very difficult at times and, youknow, maybe first time, having
to think through.
Seek outside support.
Find a mentor it could beinformal, it doesn't have to be
a paid consultant and you know.
(20:50):
Find someone that you can justtalk to openly and, you know,
feel confident that there's, youknow, confidentiality with it.
And seek out a variety ofpeople because there are a lot
of perspectives and there's alot of experience there.
And just expose yourself totrade associations where you can
(21:11):
get involved.
Don't just look within yourorganization, because there are
so many people that really aregenerous and wanting to help and
want to support and want to seeother people be successful.
We need to bring each other up.
Speaker 1 (21:23):
Yep, this is a fascinating conversation.
Hopefully, for our listeners,it lifted the curtain on what we
do, what nonprofits do and,broadly, what we can all do to
increase the impact on people,for people and the communities
that we all serve.
Diane, thanks so much forjoining us.
Speaker 2 (21:39):
Thank you.
Speaker 1 (21:40):
We hope you enjoyed this three-part series on
nonprofit mergers andacquisitions.
Next season we will, of course,offer further thoughts on
nonprofit leadership, just as awhole the whole picture out
there when it comes toleadership for nonprofits.
So join us to learn from ourexperiences and from other
dynamic leaders out there, aswell, as always, to our
(22:02):
listeners.
We thank you for joining us.
This is the Nonprofit Leader'sGuide podcast brought to you by
Boundless.
Popular Podcasts
New Heights with Jason & Travis Kelce
Football’s funniest family duo — Jason Kelce of the Philadelphia Eagles and Travis Kelce of the Kansas City Chiefs — team up to provide next-level access to life in the league as it unfolds. The two brothers and Super Bowl champions drop weekly insights about the weekly slate of games and share their INSIDE perspectives on trending NFL news and sports headlines. They also endlessly rag on each other as brothers do, chat the latest in pop culture and welcome some very popular and well-known friends to chat with them. Check out new episodes every Wednesday. Follow New Heights on the Wondery App, YouTube or wherever you get your podcasts. You can listen to new episodes early and ad-free, and get exclusive content on Wondery+. Join Wondery+ in the Wondery App, Apple Podcasts or Spotify. And join our new membership for a unique fan experience by going to the New Heights YouTube channel now!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!