The Impact of M&A on Your Association's Bottom Line - The Moery Company

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Currently, we see mergers and acquisitions on the rise in the industry. Companies are buying each other and, often large companies buy each other as well. What happens at the association? Because organizations have a membership cap at a certain level, money is being left on the table because their dues structure has yet to be modernized.

In the face of M&A, dues restructuring is essential. Your membership data will tell you how to simplify and what the right level should be. You can identify if you must move members from one section or segment to another. If their dues go up, let’s say, 10 to 15% – mark those and determine how you’re going to have the conversation with that member company about how you’ll bring them up to the new dues level. It may take a few years, but it can be done.

Hey, we realize it’s a big jump, but we’ve got to modernize our system here so we can sustain the association long term. Therefore, a strategy would be to implement 30% of it this year, 60% in year two, and move to full-dues level in year three. This could be a good approach.

And we can help with your member dues review through our business consulting service. Give me a shout at jp@moerycompany.com.

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