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Case Studies
Case Study: Delivering Merger Integration Advisory Services for a Public University Merger
Ensuring a Seamless Integration
Learn how Withum assisted in a landmark public university merger by providing a comprehensive framework that enabled a seamless integration and established a clear path forward for the combined institution.
Download the Case StudyExecutive Summary
The merger of two public universities required the seamless integration of financial operations, technology platforms, compliance obligations and governance structures with the added pressures of ensuring there were no disruptions for students, faculty, staff and vendors. Withum’s Not-for-Profit and Education Services Team was engaged to provide merger integration advisory services, helping leadership navigate critical decisions related to ERP systems, treasury, payroll and financial reporting.
The Client
Two long-standing public university institutions with a combined undergraduate and graduate student population of more than 25,000.
The Challenge
Merging two public universities is far more involved than combining two balance sheets. Leadership faced a compressed timeline and a long list of interdependent decisions that all had to land correctly on day one. Among them:
- Uninterrupted day-one operations. Students, faculty, staff, vendors and grant funders could not experience a disruption in pay, payments, financial aid or services on the other side of the merger.
- Two different enterprise systems. The two universities operated on different ERP platforms. Leadership had to determine how the merging institution’s current fiscal year activity would be closed, retained or transitioned while the next fiscal year began on the surviving institution’s platform — a decision that reached accounts payable, vendor records, pen purchase orders, payroll, treasury, opening balances, audit support and 1099 reporting.
- A demanding compliance environment. Federal Single Audit (Uniform Guidance), Title IV and EZ-Audit obligations, U.S. Department of Education financial-responsibility requirements, regional accreditation and state higher-education oversight had to be safeguarded through the transition, with clear ownership on the combined institution going forward.
- Many interdependent workstreams. Banking and treasury structure, payroll, chart of accounts, fixed assets, the university foundation and its restricted funds, federal loan programs and an affiliated housing entity each required their own transition plan.
The Approach and Solution
The surviving institution engaged Withum’s Not-for-Profit and Education Services Team to serve as its transition and integration advisors. Working shoulder-to-shoulder with finance, treasury, payroll, IT and audit leadership at both universities and coordinating with the institution’s other advisors, Withum assisted with the monumental transaction by providing a series of clear, well-documented decisions, each supported by analysis and a recommendation. Withum’s work included:
- Overall cutover strategy. Framed the central “how do we cut over” question as a clear management decision —completing the FY26 close on the legacy platform while starting FY27 on the go-forward platform, versus a full processing cutover — with a criteria-based comparison, a recommended approach and a requested decision date to protect the timeline.
- A process-by-process cutover playbook. Built a detailed cutover workbook and process-level cutover memos spanning treasury, banking and merchant services, the foundation and restricted funds, and payroll, so every workstream had a documented FY26 / FY27 treatment.
- Banking and treasury alignment. Assessed and recommended a go-forward banking structure and governance over legacy accounts, payment authority and the orderly wind-down of the merging institution’s bank accounts.
- Payroll transition. Analyzed the payroll matters arising from the merger so employees would continue to be paid without interruption.
- Chart of accounts mapping. Mapped the merging institution’s chart of accounts to the surviving institution’s standardized structure to support clean, consolidated financial reporting.
- Compliance risk assessment. Evaluated federal, Title IV, accreditation and state compliance considerations tied to the transition and laid out a proactive mitigation and governance plan for the combined institution.
- Foundation, fixed assets and affiliated entities. Advised on the foundation’s financial reporting, operating structure and cash considerations; analyzed fixed assets; addressed the wind-down of the federal Perkins loan program; and prepared onboarding guidance for the incoming leadership of an affiliated housing entity.
The Results, ROI
As a result of months of coordinated cross-functional planning, the merger closed on schedule. Withum delivered:
- A clear day-one operating model. The surviving institution began the new fiscal year on its go-forward platform, while the previous fiscal year close and audit activity remained cleanly separated, reducing duplicate entries and cross-system reconciliations and preserving a reliable system of record for the audit.
- Compliance risks surfaced early and addressed. Federal funding, Title IV, accreditation and state-oversight considerations were identified well before the effective date, with a defined transition and governance plan so the combined institution could manage them proactively.
- A documented, auditable decision framework. Leadership made dozens of interdependent choices with clear rationale, giving the institution an auditable trail and a foundation for the post-merger period.
- Continuity for the people who matter most. Employees, students, vendors and grant funders experienced a coordinated transition with no disruptions.
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