One other important feedback “loop,” or rather a feedback terminal, is an M&A event. The for-profit organization’s owners receive a single injection of $ from a new parent organization, and then the for-profit organization (a) continues operating as a separate subsidiary of the parent, or (b) ceases its separate existence, getting liquidated into the parent. (Various outcomes in between can also occur.)
I’m curious whether there is an analog of this sort of M&A “loop” with non-profit organizations. If there is no such analog, then we have two broken feedback loops in non-profits: an indifferent product/sales loop and a nonexistent M&A “loop.” How relatively important are the two broken loops in explaining the strengths and weaknesses of for-profit vs non-profit models?
This is an interesting point. I’m not sure if this is really another loop, or just part of the “return loop” for investors. M&A is one way that investors realize a return.
One other important feedback “loop,” or rather a feedback terminal, is an M&A event. The for-profit organization’s owners receive a single injection of $ from a new parent organization, and then the for-profit organization (a) continues operating as a separate subsidiary of the parent, or (b) ceases its separate existence, getting liquidated into the parent. (Various outcomes in between can also occur.)
I’m curious whether there is an analog of this sort of M&A “loop” with non-profit organizations. If there is no such analog, then we have two broken feedback loops in non-profits: an indifferent product/sales loop and a nonexistent M&A “loop.” How relatively important are the two broken loops in explaining the strengths and weaknesses of for-profit vs non-profit models?
This is an interesting point. I’m not sure if this is really another loop, or just part of the “return loop” for investors. M&A is one way that investors realize a return.