9 Reasons Why Your School’s Best Ally May Be… Another School

Schools and academies in the UK have had to change with the times in response to shifting demand and evolving standards in education. The pandemic brought about a world of change, prompting schools to navigate through lockdowns while delivering remote teaching and meeting new regulatory requirements.  

Even before the pandemic struck and brought on a global financial struggle, merging with another school or joining a group of schools was seen as a beneficial strategy. Mergers, acquisitions, and disposals of schools bring about a sea of change that can be difficult for some to power through without the right guidance from a school and MAT consultancy.  

Many governors and trustees think merging their schools with another entity can allow them to take advantage of the economies of scale and protect from unexpected financial stresses. However, should you consider a merger for only these reasons? And is your school’s best ally only another school? 

In this article, we explore the 9 reasons why your school should merge with another school. 

9 Reasons For Your School to Merge with Another School 

Whether your school should merge with another school is a critical decision that rests with school governors and proprietors. Let us explore the various reasons that lead to the final nod to merge. 

1. Lower Pupil Numbers

Pupils may drop out of school due to the cost of living crisis in the UK or related reasons. In the current economic scenario, many parents experience increased pressure on income and find it difficult to pay fees to continue their ward’s education.  

2. Intense Competition

The growing competition from other schools in the area can lead to a drop in both fee income and student enrolment numbers. This can be a primary reason to merge with another school or a group of schools. A merger can boost higher school enrolment numbers and reduce cost ratios. 

3. Economies of Scale

Upon merger, combining resources, including staff, facilities, and equipment, can reduce the school’s costs. Consolidated resources can improve conditions for all school beneficiaries and stakeholders. 

4. Higher Maintenance Costs

The school premises are a valuable infrastructure that needs regular maintenance, improvement, and renovation to keep it in good condition. This regular maintenance and upkeep can put a huge strain on your school’s financial resources.  

However, more leeway is granted in these matters when you merge with another school. The asset value of one school’s property can be used to upgrade and expand the premises and facilities in another school. 

5. School Fees

School fees are a schools’ primary source of income and can directly impact operating margins, teacher incomes, and resource availability. Increasing school fees can influence student enrolments and threaten overall numbers. 

Furthermore, the VAT on school fees may further strain parental income, especially in light of the difficult economic times that UK citizens are currently facing. 

6. Better Infrastructure

Schools need better infrastructural support to support newer educational initiatives. Digital tools and cutting-edge learning solutions are important add-ons that improve student learning outcomes.  

By combining two schools, parents and stakeholders can also request new amenities or the modernisation of current facilities. 

7. Updated Curriculum

A merger school of two schools enables combining and improving the overall curriculum. By incorporating more subjects and enhancing existing ones, a merged academy appears attractive to stakeholders. 

8. Poor Assets and Reserves

It could signal financial trouble if your school is struggling to hold on to its capital reserves and immovable assets. A lack of assets and capital reserves means no safety net and an inability to generate additional revenue for your school. 

9. Charitable Status

If your school has a charitable status, would a merger with another school affect its status? Experts suggest that a school’s charitable status continues and won’t be sold to a private entity. This information is important for your school’s stakeholders to process and understand the effect on the charitable benefits. 

What Are the Risks Associated with Merging Schools? 

After exploring the various reasons for merging with another school, let’s consider the possible side effects and vulnerabilities that may open up in this transaction. 

1. Incompatibility Issues

Schools undergoing a merger must be compatible in terms of culture, vision, and other factors for a new and improved merged entity. The merger may run into trouble if there’s incompatibility between the schools. 

2. Staff Problems

Merging schools means joining resources. However, not all staff may be accommodated, which means letting go of members. This exercise in the merger process can cause disruption not only to staff but also to students and parents and needs to be handled sensitively. 

3. Objections from Stakeholders

Stakeholders, including parents, may object to the merger if it is carried out without proper prior communication.  

4. Effect on Reputation

The news of one school merging with another may shake things up and potentially damage one or both schools’ brand image.  

5. Confidentiality Breach

It’s possible that information about the merger leaks to stakeholders and third parties ahead of exchanging contracts. This event is a breach of confidentiality affecting the outcome and impacting one or both schools’ reputations and future prospects. 

Summing Up 

The decision to consider a merger with another school can be seen as a strategic opportunity on the one hand and a solution to a challenge on the other. However, like any critical decision, it needs to be made only after carefully considering all the factors involved. 

Whatever may be the reason behind going for the merger, it’s always beneficial to be in a position of strength rather than one of weakness and vulnerability.