He views culture as being intertwined with long-term performance .
Both parties should watch for differences in how employees support each other , how management treats employees , and how the company treats customers .
“ Customer service orientation is the most important thing to be aligned on ,” says Wagner . “ A culture of ‘ the customer is always right no matter what ’ may clash with a view that ‘ the customer is right within reason .’”
Differences in style — such as the length of the workday — also come into play , she says . A team that works fewer hours may consider one that works longer days inefficient , while the group with longer days may view the other team as lazy .
Glover watches for employee and customer churn , which may indicate cultural issues within an organization . “ If a company has a customer satisfaction survey system in place like SmileBack or Crewhu , then reviewing customer feedback from those would point out potential issues ,” he notes .
How To Get Around The “ Getting To Know You ” Challenge
When possible , Glover says his company interviews key stakeholders to learn their approach to customer service , employee retention , and community involvement . “ We also dig into customer pricing , customer adds and losses over the last 12 months , and ask probing questions about why customers left ,” says Glover .
But getting a sense of the other company ’ s culture isn ’ t easy , says Tom Andrulis , CEO of MSP Intelligent Technical Solutions ( ITS ), an IT solution provider with offices throughout the United States . ITS has completed 16 transactions , including partnerships with no money exchanged as well as traditional M & A deals . “ If you ’ re buying a company , the biggest challenge is that the seller doesn ’ t want to let their staff know that they ’ re going through a transaction ,” he says .
It ’ s hard to know why employees want to work for a new company when you can ’ t access those employees , Babinchak agrees . She recommends questioning the seller ’ s management team early on about work , employee support , and problem solving .
Sometimes the seller will allow contact with some stakeholders . “ If we can talk to someone on the team , that definitely increases our confidence , but most of the time , it ’ s really not possible ,” Andrulis says .
Those who have completed multiple transactions say they learn to rely on a gut feeling to help them make a decision . If something about the other party rubs you the wrong way , take note , they say . Pay close attention to how they answer your questions .
“ You ’ ll either feel excited about bringing these people in , or you ’ ll be anxious or even agitated ,” Babinchak says .
Wagner says issues tend to reveal themselves in conversation . “ Ask what KPIs the acquirer or acquiree measures ,” instructs Wagner . “ This will tell you a lot about what is important to them . Companies measure what they care about .”
Why You Should Keep Talking
Wagner stresses the importance of communication and openness . “ The more up-front you are , the easier it will be to determine if you have a good match ,” she says .
Communication is also important after signing on the dotted line . Andrulis likes to call a meeting with the team of an acquired company and ask , “ What ’ s your biggest fear ?” It helps break the ice , giving Andrulis an opportunity to allay their fears . It also helps with the next transaction . “ We take that feedback and build it into the next meeting that we have to make sure we talk about that concern before it comes up ,” notes Andrulis .
Invariably , he says , employees ’ biggest fears revolve around whether they will keep their jobs and whether their salaries will change .
Owners , too , also worry about what will happen to them . Throughout the process , their attitudes are very revealing , Andrulis says . When owners show they care about their staff , it makes for a better cultural fit . “ Human beings care for one another ,” observes Andrulis , “ and they want to make sure the people close to them are taken care of .”
Every Culture Is Different , But Some Fit Better Than Others
No doubt , there are differences in every culture .
“ Some companies ’ employee culture is competitive and individualistic ,” Babinchak notes . “ Some are team oriented . Some are ‘ bro culture ’ with memes all day . Some are kittens and last night ’ s movie .”
Before you seal a deal , however , make you ’ re not trying to forcefit a “ kitten ” culture into a harddriving “ team ” culture .
Pedro Pereira is a writer in New Hampshire who has covered the IT channel for two decades . Pedro has worked for a variety of media companies , including Ziff Davis , CMP Media , The Nielsen Company , and daily newspapers .
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