How to Align Firm Culture and Integration in an M&A

How to Align Firm Culture and Integration in an M&A

In our recent webinar, ‘M&A Success Drivers: How to Align Firm Culture and Integration’ we were privileged to have Beverly Flaxington, co-founder of The Collaborative, to share her insights and process on how to identify a strong culture fit and then integrate two firms.

Finding the right firm to sell to or buy is a high stakes decision and a challenge for many RIAs. Firm culture is a critical component to the success of a deal. Firm integration impacts the profitability for all parties. Bev provided insight on the criteria to assess and understand a firm’s culture, how to ready your staff for the changes ahead, and the essentials for retaining the clients through the sale.

As a bestselling author, international Keynote speaker, and college professor, Beverly brought a distinctive and actionable perspective for business growth and success. To listen to a replay of the webinar, click here.

To encourage you to include firm culture as well valuation and revenue multiples, we created a 12-Point Culture Match Checklist as a guide for M&A discussions. The questions, while easy to ask, are harder to vet then one would think.

Related: How the Buyer and Seller Relationship Has Evolved

12 Point Culture Match Checklist

  • We have a clearly defined culture
  • Culture is part of our strategic planning discussions
  • If you asked a variety of our employees to describe our culture they would all use similar words to do so
  • Our leaders lead on culture
  • We can describe our culture to others in M & A discussions
  • The Client Experience at our firm is a strong driver of culture
  • We review our culture at least once a year to make sure we are in alignment with what we say, and what we actually do
  • We deliberately hire people who are a fit for our culture and confirm this in the interview process
  • When thinking about merging or acquiring another firm, culture is at the top of our list in terms of priorities to discuss
  • We would walk away from an M & A opportunity if the culture was not a fit
  • We have a plan for how we will incorporate culture into a merger once completed
  • We have a communication plan for announcing the merger to our clients
Mary Ann Buchanan
Advisors in Transition
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We match financial advisors, future financial advisors and advisory firms. RIA Match provides insightful resources, facilitates your search and puts the power in your hands. S ... Click for full bio

Most Read IRIS Articles of the Week: Feb 19-23

Most Read IRIS Articles of the Week: Feb 19-23

Here’s a look at the Top 11 Most Viewed Articles of the Week on, Feb 19-23, 2018

Click the headline to read the full article.  Enjoy!

1. Don’t Get Pinged by the Social Security Earnings Limit

I’d like to introduce you to Peggy. Born in 1956, Peggy will be 62 in 2018. She has worked in retail her whole life, the past twenty-five years spent in management. Peggy divorced from her husband 14 years ago, is still single and has no children. — Dana Anspach

2. We're Back to “Bad News is Good News” and “Good News is Great News”

This week the markets shrugged off last week’s fears and went back to the slow and steady melt up, despite economic news that looked likely to once again rock the boat. — Lenore Elle Hawkins

3. Q1 2018 Factor Views

Themes established in 2017 across a wide range of markets and factors continued to resonate through the fourth quarter. Economic growth was strong and supportive of equity markets across the globe, a range of volatility measures reached all-time lows, and business and consumer sentiment remained elevated. — Yazann Romahi and Garrett Norman

4. A Beneficial Basket of Commodities

Advisors and investors that feel they are hearing more and more about commodities and the corresponding exchange traded products in recent months are right. That is a natural result of dollar weakness and yes, the greenback is floundering again in 2018. — Tom Lydon

5. 3 Trends Shaping the Future of Asset Management

As the industry works to cope with new regulation, wades through an outpouring of new products, learns to satisfy investors’ shifting priorities and manages the active-passive debate, the viability of business units will be questioned, and at times radical measures will be taken. Peter Hopkins

6. 5 Ways Advisors Leave Money on the Table, and What to Do About It

My hope is that this article points out some opportunities for you to make more money and serve your clients at a higher level and that you decide to do something about it. — Bill Bachrach

7. The Market Has Gone Wild! Is It Time to Change Your Investment Strategy?

Whether the market is flying high or taunting your emotions with new lows and some bumpy volatility, here are four things every investor should keep in mind ... — Lauren Klein

8. How to Deepen Client Relations and Capture New Business Using Engaging Content

Why financial advisors NEED to understand much more clearly the power of good digital market. With tools like AdvisorStream, it’s easier than ever to get the content you need to drive leads and referrals today! — Kirk Lowe and Matt Halloran

9. Three Ways The Most Successful Gain Big Attention

How do some firms and ideas go from nowhere to everywhere in a few short months? All of a sudden a restaurant becomes popular, a gas station gains a cult following, or a Broadway show becomes too popular to get a ticket for years. — Maribeth Kuzmeski

10. Who Are the Hottest FinTech Firms and Influencers Around the World?

"Worldwide, $27.4 billion poured into fintech startups in 2017, Accenture reports, up 18% from 2016. With so much in play, it’s not surprising that 22 companies are new on this, the third edition of our list."  — Chris Skinner

11. The New Stock Market Normal Is Not What You Think!

Many sensational headlines have been written the past few weeks about market declines, but two things have increased for sure: the viewership and the ad revenues of financial media organizations — Preston McSwain​​​​​​​

Douglas Heikkinen
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IRIS Co-Founder and Producer of Perspective—a personal look at the industry, and notables who share what they’ve learned, regretted, won, lost and what continues ... Click for full bio