Celebrating 10 years! 2007-2017

Another Law School Merger

Not sure how much air time this has gotten, but one of the b mrtor11/22/17
Corporate socialism When the getting was good, the gains triplesix11/22/17
Good for everyone. JMU keeps their job, UIC gets on the loa doublefriedchicken11/22/17
This would be a law school takeover, not a law school merger legalace11/22/17
Depends on your definition of "merger." It would not be merg mrtor11/27/17
You mean like cooley stressing it's only an affiliation with esquire13811/27/17
Actually, in the nonprofit world an "affiliation" can be ano onehell11/28/17
How come University Chicago doesn't take over John Marshall. mrlollipop11/22/17
mrtor (Nov 22, 2017 - 3:33 pm)

Not sure how much air time this has gotten, but one of the bigger private law schools in the country -- John Marshall -- is in merger talks with the University of Illinois. The cascade continues..

https://abovethelaw.com/2017/11/major-university-with-top-50-law-school-in-talks-to-take-over-unranked-law-school/

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triplesix (Nov 22, 2017 - 4:04 pm)

Corporate socialism

When the getting was good, the gains were private. Now that the getting is hard, Illinois wage slaves will shoulder the losses.

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doublefriedchicken (Nov 22, 2017 - 4:48 pm)

Good for everyone. JMU keeps their job, UIC gets on the loan gravy train, alumni will benefit from prestige bump.

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legalace (Nov 22, 2017 - 9:29 pm)

This would be a law school takeover, not a law school merger, as the University of Illinois at Chicago does not (yet) have a law school.

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mrtor (Nov 27, 2017 - 10:00 am)

Depends on your definition of "merger." It would not be merging into an existing law school, but it would be merging into the U of I system. Let's not get all uppity about semantics.

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esquire138 (Nov 27, 2017 - 10:53 am)

You mean like cooley stressing it's only an affiliation with wmu but putting the logo everywhere? Bet it's on the dean's underpants.

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onehell (Nov 28, 2017 - 12:21 pm)

Actually, in the nonprofit world an "affiliation" can be another word for an acquisition. It's common for these "affiliation agreements" to create a right for the acquiring nonprofit or government agency to appoint a majority of the board of the acquired nonprofit, thus effectively creating a parent/subsidiary relationship. This is done because nonprofits don't have owners so buying equity is not possible, and a true merger is rarely desirable, or may be impossible where as with WMU one of the parties is a gov entity.

No idea if the Cooley arrangement involves this level of control, as many "affiliation agreements" are softer and more like a glorified MOU, but "affiliation" is a term of art in nonprofit M&A that could mean anything from a loose cooperative agreement to an acquisition. If, after the "affiliation," the two continue to maintain separate staff and real estate, it can indeed look pretty loose to the outside observer, but that doesn't mean an acquisition hasn't taken place. One side effect of this method is that it is hard to tell what the relationship really is if the affiliation agreement is not made public, as the Form 990 doesn't ask questions about it. You just have to look at the names of the people on the board and try to discern if it appears that a majority of them are somehow affiliated with the parent.

In short, you can't buy shares in a nonprofit so you buy board seats instead (assuming you are another nonprofit or government agency because a for-profit company can't control a nonprofit, at least not on paper. If the acquirer is for-profit, the acquired entity sets up or converts to a foundation, the acquisition price and any assets not sold are deposited into it, and a job with the foundation serves as a sort of golden parachute for execs the acquirer doesn't want to take).

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mrlollipop (Nov 22, 2017 - 11:44 pm)

How come University Chicago doesn't take over John Marshall. Imagine the latter's alumni excitement if that happens!

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