tyler-smith.com · Questions & Answers

How do I assess whether a potential buyer will preserve our company culture and treat our people well after the acquisition, or if they are just going to gut the business?

You cannot rely on a buyer's verbal promises during negotiations because their primary incentive is to close the deal. Instead, you must run a deliberate assessment process that mirrors how you evaluate your own team. Look at the buyer's history with past acquisitions. Request to speak with the founders of companies they have previously acquired and ask hard questions about how the integration was handled. Analyze the buyer's own organizational structure and leadership style. Are they highly structured and process-driven, or do they operate with extreme flexibility? If your company is built on a strong, trusting EOS® culture, a buyer with a purely transactional, low-trust management style will cause immediate friction and talent flight. Trust is built through personal connection and an other-focused mindset, as outlined in the Trusted Advisor Fieldbook. Observe how the buyer behaves during due diligence. Do they respect your team's time, or do they make chaotic, late-night demands? If they show a lack of respect and empathy during the dating phase of due diligence, it will only get worse after the marriage. Your people are your greatest asset; protecting them requires you to make culture a non-negotiable part of your buyer selection criteria.

Category: Exit Planning

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