College and University Mergers and Closures: Make Plan B Your Plan A
Brian Weinblatt, Ph.D.
Founder and Principal
Higher Ed Consolidation Solutions
When my colleagues and I at Higher Ed Consolidation Solutions (HCS) speak with leaders of struggling colleges and universities, we typically hear three strategic paths:
Plan A: Maintain the status quo—or status quo plus. The goal is to sustain operations, ideally with an influx of students (tuition revenue) or a major donor to bolster the endowment or provide immediate funding.
Plan B: Explore affiliations, partnerships, or mergers.
Plan C: Teachout and closure.
The Illusion of Plan A
Plan A is often the default choice, mainly for two reasons: preserving the institution’s mission and avoiding disruption. Change is difficult, and leaders fear scrutiny from trustees, alumni, faculty, staff, and students who view their institution as sacrosanct.
Yet, the success of Plan A depends on two significant factors: increased enrollment and philanthropic support—both of which are unlikely to generate the necessary impact. The well-documented enrollment cliff continues to shrink the pool of prospective students, particularly in certain regions. Even with aggressive recruitment efforts, the most realistic outcome is a modest enrollment boost—far from the transformational shift needed for long-term sustainability.
On the philanthropic side, struggling institutions rarely attract large-scale donations. Donors typically support organizations that demonstrate strength and impact. The hope of securing a single game-changing gift is often wishful thinking.
This raises a crucial question: Why is Plan A considered the most desirable? Even if it succeeds, the institution is still operating on the edge, surviving but not thriving. Is simply making it to the next year truly in the institution’s best interest?
The Uncomfortable Reality of Plan C
Few leaders want to confront the reality of closure. The idea of being the president who turns off the lights is daunting. However, institutions are closing at an increasing rate—often because leadership waited too long to take decisive action.
Closure is not only about running out of money; sometimes, it is about running out of mission. If there is no longer a clear role for the institution in its market, continuing to operate may not be the best course. While challenging, closure can be handled in a dignified and honorable way when it is approached proactively rather than as a last resort.
The Case for Plan B: A Sustainable Future
Plan B—strategic affiliations, partnerships, and mergers—offers the best path forward for transformation and sustainability. Unlike Plan A, which merely postpones challenges, or Plan C, which marks the end, Plan B allows institutions to evolve into stronger, more viable entities.
Partnerships range from limited collaborations to full-scale mergers. If an institution has enough runway to explore options, these strategies can lead to financial stability, academic expansion, and operational efficiencies. Successful mergers allow institutions to:
Add potentially hundreds or thousands of students, significantly increasing tuition revenue.
Increase their budget and workforce, creating new opportunities for faculty and staff.
Expand academic offerings through complementary programs.
Strengthen research opportunities and faculty collaborations.
Enhance alumni networks, creating a larger and more engaged donor base.
When we discuss examples of successful mergers with institutional leaders, the concept becomes more apparent. What initially seems ambiguous or even distasteful transforms into a compelling strategy. The most effective mergers occur when institutions align in mission and strengths—offering distinct but complementary academic profiles that enhance the combined entity rather than overlap.
Why Plan A Should No Longer Be Plan A
Plan A remains the default because it is familiar. But comfort should not dictate strategy. Affiliations, partnerships, and mergers are not threats; they are opportunities to advance institutional missions and secure a stronger future.
By focusing on mission-driven collaboration with a like-minded partner, institutions can create a new era of strength and impact—far greater than what they could achieve alone.
It’s time to make Plan B your Plan A.
For a complimentary, confidential consultation, connect with our team at HCS—all current and former higher education executives with direct merger experience. Contact us at info@higheredconsolidation.com or visit www.higheredconsolidation.com.