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Two California educational non-profits finalize business merger

In the context of the slowly-recovering U.S. economy, the education sector sometimes feels the financial strain more than other sectors. This has caused some schools and educational organizations to find creative business solutions. Two California non-profit education agencies did just this when they decided to move forward with a business merger between the two entities.

The merger will bring together the California Parenting Institute (CPI) and the New Direction School. Both of these educational institutes serve overlapping communities and are in need of increased financial support and assistance. The merger is designed to reduce costs by consolidating some administrative tasks. Combining the two agencies will also allow for a potential increase in funding sources than either had available as separate entities.

The two agencies had been discussing the possibility of the merger for approximately a year before they finalized the deal. CPI has a $2.6 million budget, while the much smaller New Direction School has a budget of $600,000. As far as how each of the agencies function, not much will change other than the fact that both agencies will be able to expand their services. Also, the merger is not anticipated to lead to any employees being laid off.

The business merger between the two California non-profit agencies is designed to benefit both parties. However, before they moved forward to finalize the merger, they had to work out all of the terms of the legal agreement for combining the two entities. Additionally, all of the necessary legal paperwork will need to be submitted to the proper regulating agencies before it can be finalized.

Source: Press Democrat, "California Parenting Institute, New Direction School to merge," Jeremy Hay, Feb. 18, 2013

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