5/3/2008 7:52:00 AM
FT 3 May
A "how to" guide to prep school mergers is being drawn up by the sector amid a wave of consolidation prompted by financial pressures and parents' demands for better facilities.The initiative by Britain's main association for private junior schools is intended to create larger institutions with the "scale" to provide a broader curriculum and more facilities.The M&A "toolkit" has been championed by David Hanson, chief executive of the Independent Association of Prep Schools, who suggested some members were too small to invest in improvements.The merger guide will complement a forthcoming "field force" of "very recently retired heads", who will advise member schools on M&A and other issues, Mr Hanson said.Britain's fragmented prep sector, which stretches from tiny schools set up in country houses to large academic powerhouses such as Oxford's Dragon School, is close to merger mania, according to some analysts.No figures exist for the number of prep mergers but Jean Hall of Ratcliffe Hall, the education consultancy, said: "Prep school mergers are occurring on a weekly basis, it seems." Experts say that even successful prep schools can run into trouble by making just one bad financial decision, because many are so small and have few financial reserves.FT
NEWCASTLE GAINS COMBINATION WITH A LOT MORE MUSCLE
FT 3 May
Newcastle School for Boys claims to be both bigger and better after rising from the ashes of two old prep schools: it has started winning rugby matches, teaches Spanish and has a new senior school.But Paul Mankin, chair of the governing board, offers advice learned the hard way: "You need to be sure both schools have an equally strong reason" for merger, because otherwise "the processes and personalities can end up derailing the thing".The September 2005 merger of Ascham House and Newlands School was tough, long and costly, despite a dream team of talent among governors. Mr Mankin is director of corporate finance at PwC in Newcastle - dealing with mergers in his day job as well as in his then role as chair of Ascham's governors. The combined boards also included lawyers and a PR and marketing professional who could work on selling the idea to parents. Ascham approached Newlands in 2004 about forming a day school that now has 400 boys. Newlands "had to find a solution to its reduction in numbers".Although Ascham's figures were "quite robust", it worried its top two years, which ended at 13, could be "squeezed" by the national trend among private senior schools to start at 11 rather than 13.Merger enabled it to respond, by co-creating a prep school on one of the two sites of the new institution, and co-building a senior school, that starts at 10 and will eventually teach up to 18, on the new spare site.FT
Independent/ Private Sector
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