Affiliation: A Strategic Alternative

In recent years, there has been an increase in mergers/acquisitions, asset transfers, and affiliations involving nonprofit & profit organizations; Inperium’s method uses a unique strategic alternative affiliation model to achieve business combinations. These “business combinations” have been necessary in an environment that has become more challenging for nonprofits to obtain the financial support needed to advance their missions.

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Inperium Offers a Unique Value Proposition to Prospective Affiliates

The benefits of affiliation include risk reduction associated with the Inperium Network’s superior capital access, cost reductions stemming from Inperium’s substantial and rapidly expanding scale and scope, and accelerated revenue growth related to Inperium’s demonstrated business development capabilities. These benefits are secured without noticeable disruption of local control as affiliate officers, directors and staff remain in place and continue to guide affiliate strategy but with additional resources.

Alternatives to Affiliation Such as Mergers, Acquisitions and Joint Ventures Fail to Deliver Comparable Benefits

Mergers effectively terminate the separate corporate existence of the affiliate and therefore abolish affiliate board involvement and local control. Acquisition of affiliates by for-profit buyers refocus services on consumers who can be served profitably rather than the whole community, while joint ventures fail to deliver enhanced capital access and improved sustainability to the joint venture participants.The Inperium network overcomes these deficits by maintaining the affiliate enterprise and its identity, board, management and staff, and by contributing additional financial and human resources to advance each affiliate’s progress towards achieving its specific mission.

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Affiliating - What's the Process?

The process for pursuing a nonprofit business combination, including use of letters of intent or term sheets, due diligence, and the negotiation and execution of documents to effectuate the combination, is very similar to the process used with for-profit entities. Nevertheless, business combinations involving nonprofits have important differences from their for-profit counterparts because of the unique nature of nonprofits; our model is applicable for both nonprofit and for-profit companies. An initial step in any business combination is determining whether such a combination will advance the nonprofit’s mission.

Click here to see the Inperium affiliation process and what’s next

Click here to learn about Affiliation timeline: From Decision Day to Full Implementation

Is Affiliation right for you? Use this calculator to see

Thinking about becoming an affiliate? Be sure to use the Affiliation Calculator to see if your organization is able to qualify to become an Inperium Affiliate.

Affiliation Calculator
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