Another good reason to acquire is if the acquiring school lacks the specialty of the target school. This summer, Saint Joseph's University completed it's merger with the University of the Sciences (formerly Philadelphia College of Pharmacy). Saint Joseph's had a great reputation in business and other areas, but was not overly deep in the sciences. This merger gives SJU immediate street cred for students looking to major in the sciences (e.g., premed), and Pharmacy (including graduate studies).
U Sciences might have been a little too focused, which detracted from its appeal. After merging with U Sciences (which has a Pharmaceutical MBA concentration), SJU will appeal to a much larger student audience, who can then earn more balanced science focused degrees.
Thanks, Bob. This is a good point and example to consider. This merger took place between two nearby institutions in a fairly built-up area - the Philadelphia metro area -- making the real estate angle attractive. And the fact that there was a nice complementary fit of programs between SJU and the University of the Sciences could also lessen faculty resistance, since the academic programs would simply continue to run under a different name with pretty limited changes. The recruiting advantages are the icing on the cake.
Could it be anything other than real estate, expanding footprint or a political move? Look at the latest Montclair State University acquiring a small private Bloomfield College and the state of New Jersey proving $12.5 million lifeline to the private college. Is that the cost of acquiring property in a densely populated NYC suburb?
Another good reason to acquire is if the acquiring school lacks the specialty of the target school. This summer, Saint Joseph's University completed it's merger with the University of the Sciences (formerly Philadelphia College of Pharmacy). Saint Joseph's had a great reputation in business and other areas, but was not overly deep in the sciences. This merger gives SJU immediate street cred for students looking to major in the sciences (e.g., premed), and Pharmacy (including graduate studies).
U Sciences might have been a little too focused, which detracted from its appeal. After merging with U Sciences (which has a Pharmaceutical MBA concentration), SJU will appeal to a much larger student audience, who can then earn more balanced science focused degrees.
Thanks, Bob. This is a good point and example to consider. This merger took place between two nearby institutions in a fairly built-up area - the Philadelphia metro area -- making the real estate angle attractive. And the fact that there was a nice complementary fit of programs between SJU and the University of the Sciences could also lessen faculty resistance, since the academic programs would simply continue to run under a different name with pretty limited changes. The recruiting advantages are the icing on the cake.
Could it be anything other than real estate, expanding footprint or a political move? Look at the latest Montclair State University acquiring a small private Bloomfield College and the state of New Jersey proving $12.5 million lifeline to the private college. Is that the cost of acquiring property in a densely populated NYC suburb?