Many association executives are taking steps to groom the next generation of leaders as part of their organization’s succession plan, but some are finding the process of identifying and preparing future leaders from within to be challenging. To protect the organization’s value to members and preserve what current leaders have created with commitment and passion, some associations may find it useful to consider another scenario for transition—a business partnership or acquisition.

In many instances, an acquisition or partnership may be the best solution, especially if another organization has a complementary vision and set of values. Often an organization takes this route because the partner or acquirer can provide much-needed investment capital, particularly if the association is cash-strapped or losing members.

A business partnership or acquisition strategy for succession can provide several key benefits:

Technology upgrades. Many organizations are still working on legacy IT systems—technology that is behind the times or not internally owned. The right strategic partner or acquirer may have a solid suite of technology products and services that will help the association to grow and thrive in the future. Or a partner’s investment may enable the organization to access the latest technology directly and build a core IT infrastructure rather than relying on third parties.

Ultimately, the return on investment in new technology systems can be tremendous. For instance, new technology can dramatically improve the member experience, making it more digital and personalized.

A capital infusion, combined with relevant external insights and industry expertise, could breathe new life into membership, updating what’s antiquated and building something new that’s more in line with the organization's mission, vision, and purpose.

A capital infusion, combined with relevant technology, external insights, and industry expertise, could breathe new life into membership.

New talent. Association leaders may be loyal to the people who helped the organization grow, but they should also be looking at how additional investments in staff can take the association to the next level.

A partnership or acquisition could mean additional resources to hire skilled professionals dedicated to membership acquisition and retention. It might also create an opportunity to focus on business development, creating new sources of nondues revenue to sustain and grow the organization in new and smarter ways. New team members bring new ideas that may help attract a more diverse leadership and membership.

More relevant benefits. An association’s portfolio of benefits should be reviewed periodically to ensure that its offerings are still relevant to members. An acquisition or partnership strategy serves as an opportunity to assess, audit, and reinvest in valuable benefits. In a period of change or transition, it might be easier to sunset member products and services that members no longer value.

For instance, your organization may be well known for its large-scale meetings and conferences but may have failed to invest in smaller meetings or summits that keep members engaged year-round. By evaluating current programs and rating the ones that are most valued, you can determine which areas of work are ripe for expansion and new business opportunities.

Succession Success

A strategic partnership or acquisition as part of a succession strategy isn’t about selling out to cash in; it’s about considering what’s best for the organization. That means you’ll be looking to identify potential partners or acquirers who will act as faithful stewards of the association. This may be another organization that is as deeply entrenched in your industry as you are, or it could be a current investor, sponsor, member, or industry executive.

Think about your organization’s most valuable assets—your membership, events, publications, and advocacy efforts—and identify parties with best-in-class business practices that would see those assets as a natural extension of what they already do. A partnership or acquisition could help amplify your mission, vision, and ethos.

Finding people with the same loyalty and passion as your longtime executives won’t be easy, but it’s an essential task for ensuring the organization’s survival.