Meeting Your Match
Besides the cash on the table and the nitty-gritty of contractual details, the cultural fit of the acquirer and target can make or break the deal.
When it comes to buying or selling a middle-market company, due diligence is very much a numbers game. But besides the cash on the table and the nitty-gritty of contractual details, the cultural fit of the acquirer and target can make or break the deal. And while no one expects a perfect match at the outset, the two parties need to find common ground on important issues: shared company vision, growth opportunities, strategic plans, management style and investment in talent.
If there’s a generous offer on the table, considerations about culture can easily fall by the wayside. But sellers and buyers should think long term to avoid hasty decisions, says Tom Stewart, executive director of the National Center for the Middle Market at The Ohio State University. He recommends all parties take a step back from negotiation to assess their comprehensive expectations for the deal, including how well they work together as a team. “There are things to consider beyond purchase price, and culture is high on the list,” he says.
