Merger Is Not Meant to Be

Organizations set aside consolidation to focus on separate strategic plans

By Heidi Genoist -- Tradeshow Week, 4/25/2005

The audience was all ears when Society of Independent Show Organizers Chair Margaret Pederson took the podium at the CEO Summit in Lake Las Vegas to reveal that SISO won't merge with the Intl. Assn. for Exhibition Management.

Few at the meeting seemed surprised by the news that the merger had been nixed.

"I've been hearing rumors for about the last six months from people involved in the negotiations on SISO's side that this was not going to happen," said Fuel Dog Senior Partner Ted Doyle, who was attending his second CEO Summit. "My sense is that, even though IAEM has made more of an effort to cater to executives, SISO has a unique niche for for-profit CEOs, and (members) want to make sure that remains intact."

Like most, Doyle said he also belongs to — and appreciates — IAEM. Association executives, however, were perplexed.

"I am very disappointed at the decision not to merge," said Susan Newman, vice president of conferences for the Natl. Retail Federation. "I think having one voice representing the entire industry would give us more credibility and be more effective than many small voices."

Like many IAEM members, Newman said she thought SISO members could have kept their independence and held individual meetings under the proposed consolidation plan, while the new, merged group would have offered representation on industry issues that affect independents as well as associations.

"I think this is a great loss and hope it will be considered in the future," she said.

The SISO and IAEM boards, Pederson explained, decided they each serve important roles, but "consolidation is not in the best interest of the industry or the members we serve."

IAEM stated that, "given the respective priorities of the two organizations, now is not the appropriate time for these two entities to consolidate their operations."

However, IAEM officials expressed disappointment at the development, as well as its intention to move on and possibly seek consolidation with other industry organizations.

IAEM Chair Chris Brown told Tradeshow Week there was strong support for consolidation, but "what it came down to was too many questions among (SISO's) board members ... Basically, they didn't want to give the green light to keep talking."

Brown, Natl. Assn. of Broadcasters' senior vice president of conventions and expositions, said he hasn't given up on the idea of SISO and IAEM merging.

IAEM directors will meet next week to decide their next step, which will likely include a move to a corporate (rather than individual) membership and dues structure.

Pederson, president of Primedia Business Magazines & Media, said SISO will review ways it can better serve members. She added that the groups could still cooperate on industry-wide problems such as advocacy and marketing.

(In the May 2 issue of TSW, the suppliers' point of view.)