As the economy has caused college tuition to rise, many private college and universities have suffered from low enrollment and have been forced to decrease their class offerings and eliminate faculty and staff. In some cases, mergers and acquisitions with other universities have allowed struggling academic institutions to expand and offer more to their students. A private university in Georgia recently merged with an out-of-state college, and both schools expect to benefit from the transaction.
The board members of both Georgia’s Point University and the out-of-state Montreat College agreed to the merger that will join the two Christian schools. Together, the institutions will be known as Point University, but the Montreat College campus will keep its name. The Georgia campus has 1,400 students, while Montreat College has 858.
According to reports, Montreat College has had issues with low enrollment and finances in recent years. As a result, the school had to lay off several employees and eliminate some of their programs in 2012. Both schools expect that the merger will enable them to offer more programs and allow undergraduate students at the Montreat campus to have access to graduate programs at Point University.
Because the boards of both schools approved the transaction, the merger seems to have a good chance of going smoothly. However, businesses pursuing the process of mergers and acquisitions may wish to consult with someone who is knowledgeable about the business and commercial laws of our state. It may be good for the businesses involved to know all the benefits and risks associated with the transaction as they make their way forward.
Source: Associated Press, “Montreat to pursue merger with Ga. university,” July 30, 2013