What’s the deal?Housing association mergers

Ann Santry, Sovereign4 December 2017

Sovereign 2000

What’s the deal? Housing association mergers 2

Merger drivers

• Service effectiveness

• Business efficiency

• Focus on core area

• More new homes

• Not growth for growths sake

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Strategic alliance matrix

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Strategic ambition

Culture

Geography

Stock

Balance sheet

People

Improved services

Greater efficiencies

More homes

Shared… Quality… Potential for…

Growth through merger

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12,581 15,200 20,500 30,718 37,000

Twynham Vale Kingfisher One Sovereign

2004 2005 2007 2009 2011

Benefits for residents

• More local management

• In-house maintenance service

• Additional new homes

• More resources – WBR etc

• Investment in services

6What’s the deal? Housing association mergers

Stakeholder benefits

7What’s the deal? Housing association mergers

• Capacity - £s and people

• Investment in projects

• Research

• GIS mapping

• Risk sharing

• JVs

Employee benefits

• Experience

• Opportunity

• Business resilience

• Employment offer

But

• Uncertainty

• Change

8What’s the deal? Housing association mergers

Spectrum – Merger rationaleShared experience

• LSVT

• Merger track record

• Stock swaps

Shared geography• 23 local authorities

• 850 homes per LA average

Shared approach• Similar strategy

• Shared vision and purpose

• Similar business model & governance

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10What’s the deal? Housing association mergers

New Sovereign

Post-merger challenges

• Leaving the past behind!

• New team dynamics

• Business sensitivities

• How ‘we’ do things…

• Dealing with the change curve

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Post-merger challenges

• Pace

• Delivering savings and capacity

• Maintaining morale

• Harmonisation - T&Cs etc

• Maintaining an outward focus

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Lessons learned

• 2+2=5

• Revisiting decisions

• Pace

• Communicate & communicate

• Be visible and listen

• Maintain momentum

13What’s the deal? Housing association mergers

What makes a merger work?

• Parking personal impact

• Strong rationale & business case

• Shared view of the future

• Joint ownership of the process

• Cultural similarities (there’s no

such thing as fit)

• Hard work!!

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Thank you