Podcast Summary

Leading Organizations That Matter

Host: Rey Spadoni
Episode 91: Contemplating M&A: Pursuing the "cake and eat it too"!
Date: November 11, 2025

Overview

In this concise solo episode, Rey Spadoni explores the often paradoxical ambitions organizations face when considering mergers and acquisitions (M&A), especially within the nonprofit health care and social service sectors. Rey unpacks the desire to "have your cake and eat it too"—to retain autonomy, mission alignment, and organizational culture while also benefiting from the competitive advantages consolidation promises. The episode challenges leaders to candidly confront competing priorities and build strategies rooted in self-awareness and honest discussion, rather than wishful thinking.

Key Discussion Points & Insights

1. The “Cake and Eat it Too” Mindset in M&A

(00:15 – 01:40)

• Rey opens by defining the episode’s main theme, explaining the meaning of “cake and eat it too” in the context of M&A.
• He notes how organizations desire mutually exclusive outcomes—full independence and the benefits of larger scale or stronger partnerships.

Quote:
“If you can find a way to have your cake and eat it too, then good on you. It’s certainly worth trying.” — Rey Spadoni (00:34)

2. Pitfalls of Applying For-Profit Metrics to Nonprofits

(01:40 – 02:16)

• Rey observes that M&A in nonprofits is not just about “value, earnings, ratios and multiples”—terms borrowed from for-profit contexts.
• He refocuses on the mindset driving organizations to contemplate mergers, acquisitions, affiliations, or strategic relationships.

Quote:
“These are drawn from the for-profit realm and are often clumsily and unsuccessfully applied to nonprofit situations.” — Rey Spadoni (01:51)

3. The Two Crosscurrents in Organizational Thinking

(02:17 – 05:15)

• Rey highlights two competing perspectives that commonly surface inside mission-driven organizations considering M&A:

  Crosscurrent 1: The Push for Growth and Security

  • Themes:
    • Industry consolidation threatens small players.
    • Lack of seat at decision-making tables.
    • Difficulty competing with large organizations.
    • Need for capital to innovate, expand, and survive.
  • Example sentiment: “It’s getting harder to compete with the big players. We need greater access to capital to innovate, meet operational demands, grow, compete and survive.” (02:49)

  Crosscurrent 2: The Pull for Autonomy and Tradition

  • Themes:
    • Fierce protection of identity, name, and mission purity.
    • Board resistance to losing organizational spirit or local feel.
    • Concern over diluted mission and culture.
  • Example sentiment: “We will never give up our name. We need continued full autonomy. We cannot water our mission down in any way.” (03:27)

Memorable moment:
“Sometimes leaders will be commissioned to go out and find that cake and eat it too…one that will both preserve the autonomy and smallness of the organization while also allowing it to compete with the bigger players. Yeah, good luck with that.” — Rey Spadoni (03:59)

4. The Reality: Tradeoffs Are Inevitable

(05:16 – 06:24)

• Rey notes that the quest for win-win outcomes often devolves into “endless, frustrating wild goose chases.”
• Such pursuits waste time, damage relationships between organizations, and rarely yield perfect solutions.
• The practical way forward: Leaders and boards must recognize competing priorities, openly address them, and make conscious tradeoffs.

Quote:
“There’s no simple remedy here other than to acknowledge these cross currents openly and to actively begin trade off conversations. A board may want 10 things, but it will help to understand which of those tens are the highest priorities and what the actual specific no fly zones really are.” — Rey Spadoni (05:42)

Notable Quotes

• “If you can find a way to have your cake and eat it too, then good on you…especially true in the world of M&A.” — Rey Spadoni (00:34)
• “These are drawn from the for-profit realm and are often clumsily and unsuccessfully applied to nonprofit situations.” — Rey Spadoni (01:51)
• “We will never give up our name. We need continued full autonomy. We cannot water our mission down in any way.” — Rey Spadoni (03:27)
• “Yeah, good luck with that.” — Rey Spadoni (03:59)
• “A board may want 10 things, but it will help to understand which of those tens are the highest priorities and what the actual specific no fly zones really are.” — Rey Spadoni (05:51)

Practical Takeaways

• Acknowledge Competing Priorities: Leaders should not avoid or deny the real tradeoffs inherent in M&A decisions.
• Prioritize and Clarify Non-negotiables: Boards need to distinguish between what would be nice and what is essential—the “no fly zones.”
• Avoid the Folly of Perfection: The perfect partnership—one that preserves everything and gains everything—rarely exists.

Episode Structure & Timestamps

• (00:00) Definition and main theme explanation
• (01:40) Distinction between for-profit and nonprofit M&A considerations
• (02:17) Dual perspectives within organizations considering M&A
• (05:16) Reality of tradeoffs, advice for leaders and boards
• (06:24) Closing thoughts and practical next steps

Summary:
Rey Spadoni delivers a candid, insightful reflection on the emotional and strategic challenges nonprofit leaders face with M&A. He encourages honest dialogue and the courage to make real choices, rather than chasing the elusive “cake and eat it too” scenario.

For more resources and leadership insights, visit ReySpadoni.com or RedSailAdvisors.com.