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Culture, Values, and Competitive Advantages for Entrepreneurs in M&A

 

Status Update: How Strong Are Culture & Values in your Organization?

Building a successful business means building a successful company culture. When driven by a strong sense of purpose and supported by strong values, entrepreneurs can capitalize on the sum total of their efforts when looking to make an exit. 

However, a significant growth obstacle for some organizations can be in their ability to successfully attract, engage and retain talent. But, is this a failure of company culture?

For entrepreneurs seeking an acquisition, a deal aligned with culture and values can create an opportunity to upgrade talent across an organization, providing instant access to an ‘off-market’ talent pool to close the talent gap, as in an increasingly competitive job market, M&A has become a strategic advantage for growth. 

 

M&A is Set to Continue 

It’s well known that global M&A activity set records in 2021, surpassing pre-pandemic activity and climbing towards peak levels reached in 2015 and 2007

While the disruptions caused by the pandemic may have primed the market for increased activity and consolidation, founders and business owners who have been able to build businesses around strong values and culture continue to be rewarded for their efforts.  

While cycles of boom and bust remain, the momentum of the pendulum – in either market cycle – can be capitalized on by savvy entrepreneurs ready to turn their hard work into a desirable valuation and sale.

 

 

Building A Culture of Continuous Improvement and Growth

As businesses increasingly focus on the digital transformation of their operational environments, the scale at which infrastructure upgrades have increased will continue to be an important factor and competitive advantage when bringing your business to market. Put simply, having the ability to present a roadmap for a successful data integration may be a previously unrecognized driver of success for integration post-merger.

 

 

Lead with Emotional Intelligence

The emotional aspects of a deal can be overwhelming and the importance of clearly defined priorities, a defined communication strategy, and plan to carry the deal over the goal line cannot be underestimated. 

Over-communicating or remaining silent until a deal closes can be a costly misstep. It’s essential to share the right information, at the right time with a trusted advisory team to maintain deal momentum with expertise and emotional intelligence. Moreover, understanding the cultural differences between organizations can be the secret sauce to the enduring success of the deal.

Internal and external forces, as well as hard and soft synergies play a crucial role in shaping beliefs and values that inform the culture of an organization. Important questions to consider include,

  • How can a post-merger environment best honor the legacy of your efforts as an entrepreneur when it comes to a marriage of cultures?
  • Will the transition and implementation period work with existing cultures to prevent an exodus should priorities shift?
  • What considerations can minimize disruptions while maximizing and fostering employee engagement post-merger?

When it comes to doing the heavy lifting and staying engaged, SEA helps owners throughout the M&A process ask the right questions and uncover the right answers to make informed decisions and help entrepreneurs achieve their ultimate exit. 

We are ready to help you on your entrepreneurial journey. Call us anytime (215) 489-8881 or schedule a conversation here.

Strategic Exit Advisors