Forvis Mazars, a major accounting and consulting firm, has introduced the Higher Ed Strategic Partnership Hub, a confidential network designed to facilitate connections between colleges and universities exploring strategic partnerships, including potential mergers. This initiative comes at a time when the higher education sector faces significant financial challenges, such as declining enrollments due to demographic shifts and reduced state and federal funding. In 2024, there were 33 closures or mergers among private, four-year colleges, a substantial increase from an annual average of 12 between 2016 and 2023.
The Hub aims to provide a structured approach for institutions that may not know how to initiate conversations about partnerships or mergers. According to Rachel Pauletti, leader of Forvis Mazars' higher education consulting practice, it typically takes years, not months, to successfully execute such partnerships. The process involves an initial survey to gauge interest in various partnership forms, followed by a complimentary session with the firm's consulting team to identify potential alignments. Participating schools also receive a Mergers & Acquisitions Playbook for higher education institutions.
The program is free to participate in, with no obligation for schools to engage the firm's services or proceed with a partnership. Forvis Mazars intends for the Hub to empower institutions to take a deliberate and strategic approach to forming partnerships in the coming decade, supporting their long-term viability. This initiative arrives as the U.S. Department of Education, under a Trump administration proposal, also seeks to accelerate and simplify college merger and acquisition reviews within the next year, indicating broad support from university leaders for policies that help the sector withstand financial pressures.
