Independence...Integrity...Value

Housing Association Mergers

AWICS is able to support housing associations that are either considering or implementing a merger.

For example, we have recently assisted two London housing associations (YMCA East London and YMCA London Southwest) with preparing a business plan and a business care for merger.

This involved producing thirty-year business plans for each housing association on a stand-alone basis and for the proposed group that included the income & expenditure account. balance sheet, cash flow, treasury management plan, asset management plan, an assessment of value for money gains and a sensitivity and risk analysis.

We also provided a business case report that covered:

  • The Business Proposition: Internal approvals and decision-making for the merger; Rationale for the Merger; Proposed benefits (value for money and cost efficiencies); Proposed benefits to residents and service users; Strategic Direction; Project Management; Roles and Advisors.
  • Governance Arrangements: Shareholder Agreement and Consents; Board Skills and Training.
  • Financial Matters: Outputs of the financial model; Sensitivity Analysis and Stress Testing; Summaries of pre-merger financial plans and conslidated position.
  • External Factors: Extension of Right to Buy; Rent Reduction; Near market rents for tenants on high incomes; Welfare Reform.
  • Due diligence, SWOT and Risk Analysis: Due diligence; SWOT analysis; Risk analysis; Treasury Management; Asset Management and Development; Staffing and TUPE; Pensions; Information and Communications Technology.
  • Dis-benefits of Merger.
  • Stakeholder engagement.
  • Post-Merger monitoring.

We made presentations to the boards of both associations and assisted the Chief Executives in aking a presentation to the Homes & Communities Agency.

The merger has now taken place and is successful.

For more information on how AWICS could assist with housing association mergers contact Adrian Waite at adrian.waite@awics.co.uk or 017683-51498.

Our briefing paper on housing association mergers can be freely downloaded from HERE

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Housing Association Mergers can produce increased value for money in terms of efficiencies and improved homes and services - but only if there is a robust business plan and business case.

More Information about Housing Association Finance

For information about our seminar: 'All You Want to Know about Housing Association Finance' please click HERE

For information about in-house training in housing association finance, please click HERE

For information about management consulting advice and assistance for housing associations, please click HERE

For information about Independent Tenants' & Residents' Advice, please click HERE

For briefing papers on Housing Association Finance, please click HERE

For our newsletter the 'AWICS Housing News' please click HERE

For information about our publication: 'All You Want to Know about Housing Association Finance', please click HERE
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