Case study: PossAbilities CIC governance and finance review
Updated: Apr 15, 2021
Date: October 2018 – January 2019
Challenges faced by the client: PossAbilities, a thriving Public Service Mutual based in Rochdale that delivers adult day services, was considering whether to acquire a struggling care home and intermediate care provider.
PossAbilities required support to undertake an operational, legal and financial due diligence, to inform a decision of their Board on whether or not to acquire the other provider. PossAbilities needed to not only consider the health of the other organisation, but consider the technical approach to any acquisition and the impact on PossAbilities, its operating model and governance.
Support offered: Mutual Ventures, with legal input from Bates Wells, supported PossAbilities over a three month period to complete a detailed review into the operations, finances and risks associated with the potential acquisition. We engaged with the other provider, undertaking a detailed review of information. We designed new operating models for the potential merged organisation, designed new governance arrangements and outline the options for the transaction to be completed. We provided coaching and support to PossAbilities’ senior leadership team in considering their decision.
Outcome achieved: Ultimately, the decision was taken not to proceed. This was based on a robust and detailed analysis and ensured that PossAbilities made the correct decision for the future of the organisation. We also created learning tools on the challenges facing Public Service Mutuals, and the lessons learnt.