Buyer beware? Reverse due diligence for academy trusts

When a smaller trust or school plans to join a larger multi-academy trust (MAT), carrying out reverse due diligence is just as important as the checks an acquiring trust makes.

This process helps you look beyond reputation and relationships and gives clear assurance for governors, staff, parents and pupils that the move is the right fit.

What is reverse due diligence and why does it matter?

Reverse due diligence is the joining school or smaller trust’s own assurance process: essentially a structured check on the prospective MAT, using targeted questions and document reviews to test governance, finances, educational support and cultural fit before any commitment is made.

The aim is to check whether the prospective MAT can provide the governance, financial resilience, educational support and cultural alignment your stakeholders expect – rather than relying on decisions that feel like a done deal driven by personal connections.

What should you review during reverse due diligence?

• Governance and structures: understand the MAT’s scheme of delegation, decision-making culture, local governance model and how risk and educational standards are overseen. This shows how your school’s voice will be heard and how accountability works day to day
• Financial policies and reserves: review financial controls, reserves policy and how resources are allocated to schools. This gives a clear sense of the financial culture and sustainability across the group
• Staffing and HR: look at people policies, TUPE approach, potential duplication of roles, pay and conditions, professional development and how central services support schools. Staff stability and morale are essential to a smooth transition
• Key supplier contracts: identify major contracts (IT, estates, catering, finance systems) and how onboarding costs, exit fees and service levels will be managed. The practicalities of integration often turn on these details
• Litigation and disputes: check for current or pending litigation and complaints, including safeguarding or regulatory matters, so you understand any potential inherited risks
• Legal and regulatory compliance: confirm compliance frameworks and how the MAT shows adherence to applicable requirements and best practice.

How to run an effective process

Begin with a clear scope and set of questions aligned to your priorities or concerns, then ask the MAT for structured disclosures with supporting documents (policies, organograms, management accounts, board minutes, risk registers, audit reports and exemplar contracts). This puts a simple structure around a process that, in the sector, has too often relied on informal impressions.

Follow up with short, focused conversations with the chair, CEO, CFO, COO, Director of Education and safeguarding lead to test how the framework works in practice, not just on paper. This helps turn headline assurances into evidence-based confidence.

What good looks like

The output should be a concise report setting out findings against each core area, identifying strengths, gaps, integration costs and mitigations, so your trustees can make clear, stakeholder-focused decisions. Proper reverse due diligence gives you the evidence to explain why this MAT is the right home – or why you should look elsewhere.

Key takeaways

Reverse due diligence isn’t adversarial; it’s a collaborative way to build assurance. By putting a simple structure around the process and asking clear questions across governance, finance, people, contracts, disputes and compliance, you reduce risk, smooth integration and protect your community’s long-term interests.