Law Students

A & M Approved for Health Science Center and Law School Merger
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Texas A & M University received state and regional approval for their merger. School mergers tend to be very expensive. Often times the institution will have to assume millions in debt or expenses. Other campuses have to be taken over or dissolved. If they are taken over, millions can be spent on financial consultants, attorneys, and experts who have a high price tag. Bringing two schools together is highly complex and can take months just to finish preliminary paperwork. If the campuses are consolidating, assets can be split or sold. Some entities may dissolve. The accounting books on both sides can move buildings and such off their balance sheets and accelerate depreciation of capital expenses such as leases as well as other potential issues.

A&M may also take on whatever outstanding debt the two new institutions have on their respective balance sheets. This can again mean millions in debt added as well as a possible lowering of their credit rating. As of 2012, Moody’s gave Texas A & M University a rating of Aaa. They were found to be risk diversified, liquid and with a healthy operating performance. The one thing that gave them a lower credit rating was their “decentralized campus…management,” according to moodys.com.

  
What
Where


Seemingly an answer to Moody’s assessment, A&M’s merger will strengthen the University’s position. Although in the short term it may be more expensive for the University to borrow money, as their higher debt ratios will raise their cost of capital, in the long term, the Health Science Center will likely bring more research grants and possible corporate partnerships. The Law School will also be a revenue generator, and will increase the size of the school as well as its federal grant and subsidy consumption capacity.

According to WTAW news, Texas A&M University President Loftin recently told a gathering of university staff that merger approval for both schools was given by the Texas Higher Education Coordinating Board and the Southern Association of Colleges and Schools Commission on Colleges.

In an email, Doctor Loftin notified the university community that July 14 will be the official merger date. Loftin also wrote, “Over the coming months we will work to appropriately integrate systems and processes across a number of departments and units while maintaining the Health Science Center’s distinct organizational identity. These activities are important steps in preparation for the SACSOC site visit that will occur within the next six months to affirm the accreditation status of the entire university.“

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Estate Planning Attorney with 6+ years of experience

USA-CA-Los Angeles

Los Angeles office is seeking an experienced estate planning attorney with 6+ years of experience. C...

Apply Now

Litigation Attorney with 2-6 years of experience

USA-OR-Portland

Portland office is seeking a litigation attorney with 2-6 years of experience.

Apply Now

Employment Attorney with 10-20 years of experience

USA-CA-Ontario

Ontario company is seeking a senior labor counsel with 10-20 years of experience. Candidate must hav...

Apply Now

Patent Litigation Attorney with 3-5 years of computer science experience

USA-IL-Chicago

Chicago office of our client seeks patent litigation attorney with 3-5 years of experience. The cand...

Apply Now

RELEVANT JOBS

Attorney

USA-CA-San Francisco

As an in-house legal counsel at Wix’s legal department, you will play a significant role in de...

Apply now

Attorney

USA-MO-Kansas City

Successful, expanding KC personal injury law firm seeks an attorney with 5+ years personal injury li...

Apply now

Attorney

USA-MD-Greenbelt

CRIMINAL LAW ATTORNEY - Houlon, Berman, Finci, Levenstein & Sandler, LLC, an established AV rat...

Apply now

Attorney

USA-MD-Greenbelt

FAMILY LAW ATTORNEY - Houlon, Berman, Finci, Levenstein & Sandler, LLC, an established AV rated...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top