Culture can be a make-or-break factor in whether or not a business acquisition ultimately succeeds.
Kelly McDougald, an Executive Advisor with BDC Advisory Services, defines culture as the “explicit and implicit values of an organization and its people” as well as the processes and behaviours that have been adopted based on those values.
Culture has a tremendous impact on how people go about their daily work, interact with each other and achieve the company’s goals. It’s often what differentiates two companies that offer similar products or services, and it can make a big difference in how well a new employee integrates into a company—and how well two companies fit together.
“What do you reward? What do you invest in? Do you make decisions based on detailed analytics or instinct? Does your team work collaboratively or do you adhere to a strict hierarchy?” asks McDougald. “The answers to questions like those tell a lot about an organization’s culture.”