Following the merger, King’s College London will absorb 5,000 postgraduate students, taking the total to around 47,000 students, exceeding the University of Manchester. The merger will bolster their research capacity and output, and level the playing field against rival universities.
The merger is expected to take place by the end of summer 2027, with King’s College London expected to retain its name. With preliminary approval already granted by the government, this route is growing in popularity as the higher education sector grapples with rising operating costs, falling student numbers, and prepares for the upcoming international student levy.
A lifeline for distressed education institutions
According to the Office for Students (OfS) report, Financial Sustainability of Higher Education Providers in England 2026, an increasing number of providers are proactively addressing their financial position, focusing much energy on income diversification and cost reductions. The OfS also found that some providers are adopting a more realistic view of future financial conditions when determining the action required, leading to more substantial transformation, albeit short-term in nature.
In line with this, our independent education experts are experiencing growing demand for restructuring support, such as streamlining management structures, reviewing pay structures, adjusting business models for reduced student numbers, and school refinancing. Most trustees and governors our team speak with are citing a significant decline in enrolment, with pupil numbers dropping by nearly 25% to 30% over the last two years.
Through a planned merger, higher education establishments can diversify risk and pool resources to build a more resilient institution with fortified finances and greater investment capacity. A successful merger or strategic partnership preserves value, restores financial health, and puts the business on a strong financial footing.
For more information on the drivers of merger and acquisition (M&A) activity, key factors to consider in education M&As, and possible alternatives to a merger, see our dedicated page on mergers and acquisitions. For tailored advice on your current position, contact one of our education advisory specialists.
Step-by-Step: What to Do Next
As a school leader, you carry important legal duties under charity and company law. Failure to act in the best interests of the school, especially in times of distress, can result in personal liability or reputational damage.
Legal and Governance Responsibilities
As a school leader, you carry important legal duties under charity and company law. Failure to act in the best interests of the school, especially in times of distress, can result in personal liability or reputational damage.
Key responsibilities include:
- Ensuring the school remains solvent
- Seeking advice from professional advisors at the earliest signs of trouble
- Keeping full records of decisions and justifications
