Post #12 of 24 – Why Cultural Fit Matters More Than You Think

When people talk about selling their agency, the conversation almost always starts with numbers — valuation, multiples, EBITDA, earnouts.

But here’s something I’ve learned after years of M&A work: the success or failure of most acquisitions isn’t determined by the financials. It’s determined by cultural fit.

You can negotiate deal terms. You can structure earnouts. You can model synergies.

But you can’t negotiate culture.

What “cultural fit” really means in M&A
Cultural fit is the alignment of values, decision-making styles, communication, and priorities between buyer and seller.

In practical terms, it shows up in questions like:

– How are employees treated and developed?

– Who makes the decisions and how fast are they made?

– What does leadership look like day to day?

If those things don’t align, friction shows up immediately — and it spreads fast.

What happens when it’s missing, I’ve seen great agencies lose their soul after being acquired by the wrong partner.

❌ Founders become frustrated because the new owners impose rigid systems.
❌ Employees feel lost as their culture of creativity turns into one of reporting and control.
❌ Clients sense the shift, and relationships start to erode.
Financially, those deals look fine on paper. Operationally, they struggle.

What happens when it’s right. When cultures align, it’s magic.

✔️ The buyer brings resources, process, and stability.
✔️ The seller brings energy, relationships, and deep client understanding.
✔️ Together, they scale faster than either side could alone.
✔️ The founder feels proud watching their team thrive with new opportunities.
✔️ The buyer gets what they paid for — and more.

How to test for cultural fit
– Spend real time with the buyer before signing the LOI.
– Ask about their post-acquisition track record — how do they integrate other teams?
-Talk to other founders who’ve sold to them.
-Observe how they treat people who aren’t in the negotiation room.

Trust your gut. Culture doesn’t show up in a spreadsheet, but you’ll feel it in every conversation.

When you sell your agency, you’re not just selling assets — you’re handing over your legacy, your team, and your reputation.

So don’t chase only the highest price.

Chase the right partner.

Because when the culture fits, everything else falls into place.