Making Sure an M&A is a Cultural Fit | Karl Motey | Mergers & Acquisitions
Over the course of the COVID-19 pandemic, it’s easy to say that merger and acquisition activity has escalated. Even as businesses are trying to parse out everything that’s happened throughout the past three years, companies everywhere are looking to expand their market. This makes businesses that aren’t in great standings during the market a great target for an acquisition. However, when evaluating the targets that you have in mind for an M&A, there are a number of things to make sure that the target is a cultural fit .
Evaluate the Acquisition’s Culture
The most important part of evaluating an acquisition is to identify the employee and customer experiences that are had. So many times, companies will only focus on the potential acquisition’s loans and credit rating when the thing that really matters is the company’s culture.
For example, what are the company’s hours of operation? Are they employee and customer friendly? What are they offering the employees by means of work-life balance and compensation? Does the company’s technology help or hinder the overall workflow and productivity of the company? These questions can drastically affect the company’s overall valuation.
Another thing you may want to consider is the business structure that the company may have. The last thing that you’d want to have happen is to acquire a company that’s 100% back in the office when you’re a fully remote company.
Make Sure Your Company’s Culture Aligns with the Acquisition
When looking to acquire a new business, it’s only natural that you’re going to want to close the deal as fast as possible. Businesses are constantly looking and fighting for the best people to work for them. However, if you rush through a merger because you like the value of the workers that are available and don’t take your culture into account, you may find that your new employees will leave for new opportunities.
The workers are only a piece of the puzzle when looking for a new acquisition. As stated above, you’re going to want to make sure that your culture aligns with the culture of the company you’re acquiring. That way, it’s a seamless transition for your new employees, and they feel comfortable when coming to work, no matter where that is. Keeping your employees happy is an incredibly important part.