Dive Brief:
- The University of Findlay won’t move forward with its planned merger with Bluffton University after a Wednesday vote by Findlay’s board.
- Findlay is terminating its memorandum of understanding with Bluffton, signed last March, according to a news release. The university cited time and expenses required to complete the merger, as well as the costs of keeping their respective NCAA teams at different divisions.
- “For us, due diligence in this case has demonstrated that partnering in key ways is a better solution,” Findlay President Katherine Fell said in a statement.
Dive Insight:
Bluffton had no control over Findlay’s decision not to proceed with their joint merger application with their accreditor, the Higher Learning Commission, according to Cheryl Hacker, chair of Bluffton’s board of trustees.
The private Christian universities, both in Ohio, announced their planned merger in March 2024. At the time, both boards unanimously approved the plan.
“From a vantage point in the future, we will look back at this moment in the history of higher education as one that required new approaches and bold actions,” Findlay’s Fell said then. “I believe this merger will prove to be both.”
Findlay is by far the larger institution, with 5,057 students in fall 2023, compared to Bluffton’s 678.
It’s the financially stronger one as well, with $238.2 million in assets and $84.7 million in total revenue in fiscal 2023, well over double what Bluffton reported on both counts. Although both institutions posted operating deficits in fiscal 2023, Bluffton’s was larger even though it brought in less revenue.
Their original plan called for Findlay to maintain both of their campuses post-merger. They would also maintain their athletic teams under their current NCAA divisions — Division II for Findlay, Division III for Bluffton. This was a “key” element of the merger, Findlay said Thursday.
“However, regulations necessitate separate processes for athletic financial aid distribution and prohibit the sharing of resources and sports facilities, resulting in fewer synergies in those areas than originally anticipated,” the university said.
Following Findlay’s decision to terminate the merger process, Bluffton’s Hacker said that the university “continues to be financially stable, strategically independent, and well-prepared for the future,” and that the termination would not detract from its mission.
Bluffton also noted that it will “continue to explore strategic partnerships that support the long-term goals of the institution and the students it serves.”
Officials at both universities also maintained that the due diligence and preparation process was valuable and educational, even though it wouldn’t result in a merger.
According to Fell, the process “resulted in an invaluable reflective process for both campuses through the examination of strengths, areas for growth, and capacity to innovate and change within the evolving landscape of higher education.”
The expense and complexity of merging higher education institutions are among the key challenges in making a combination work, experts say.
