Culture is the Key: Setting IT Acquisitions Up for Long-Term Success

By Dr. Aaron Mahl, EVP Business Development, iTValuations

In the world of mergers and acquisitions, especially in the IT services space, many believe the heavy lifting ends once the deal is signed. But as Aaron Mahl of IT Valuations and Heinan Landa of Optimal Networks emphasized in a recent webinar, that’s actually when the real work begins. The integration phase, they argue, is where the future of the acquisition is either made or broken—and at the heart of that success lies one core principle: cultural alignment.

Why Culture Matters More Than You Think

Culture isn’t a buzzword or a branding statement; it’s how things truly get done in an organization. It encompasses core values, behaviors, rituals, and leadership style. As Heinan Landa put it, “Culture is how your organization behaves when no one is looking.”

In acquisitions, culture is often neglected in favor of numbers and synergies. But as Landa shared from personal experience, a misaligned culture can lead to employee turnover, loss of clients, and ultimately, a failed integration. It only takes one misstep to derail what otherwise looked like a perfect financial match.

Practical Advice for Finding Cultural Fit

Landa and Mahl offered real-world strategies for ensuring cultural compatibility before inking the deal:

• Ask better questions: Instead of “Do you value your employees?”, try “What’s the most heroic thing you’ve done for an employee recently?” This opens the door to authentic stories that reflect true organizational values.
• Look beyond the CEO: While a rapport between leaders is helpful, it’s vital to assess alignment across the leadership team and staff. A structured cultural screening tool, like the one used at Optimal Networks, can offer valuable insights.
• Measure what matters: Retention rates, employee satisfaction, NPS scores, and client churn are quantifiable indicators of cultural health.
• Court, don’t rush: In a rush to close, buyers often overlook deeper discovery. Mahl emphasized the need for a “courtship model” over a “speed-dating” mindset, allowing time for conversations that go beyond financials.

Advice for Sellers

If you’re on the selling side, don’t just say, “I want to take care of my clients and employees.” Be ready to define what that looks like. What does a successful transition mean for your people? What legacy do you want to preserve? Buyers are listening for more than lip service—they want proof that culture is lived, not just talked about.

Lessons from the Trenches

Landa shared hard-earned lessons from past deals, including one where cultural misalignment led to the departure of nearly the entire acquired staff within a year. In contrast, another deal succeeded because both parties prioritized employee and client well-being throughout the process.

He left attendees with this advice: “Be selective. Take the time to truly understand the impact of an acquisition on your business. A single transaction can change your company’s entire trajectory.”

Final Thought

Whether you’re buying or selling, one thing is clear: culture isn’t just part of the deal—it is the deal. For long-term success, make culture a priority from day one.

Want to catch the full conversation? Access the webinar recording at itvaluations.com/webinars.