Culture Affects the Bottom Line
When a company demonstrates that it’s thriving with happy and motivated talent, it is more likely to garner a higher business valuation when going to market for a merger or acquisition.
There is a proven link between culture, employees, productivity, and profit. Research shows that:
Prospective buyers do look at the culture within a business when evaluating whether to purchase it and when assessing how much it’s worth. When touring the company, interested investors will pay attention to the staff and whether they appear content and motivated. This can affect the opinion of potential acquirers regarding the quality of your company.
When everyone from top management downward contributes positively to the company culture, it becomes fixed in people’s minds and attitudes. Changing the culture can be a long-term investment, but it is worth it.
How To Improve Company Culture
There are several factors that can be involved in enhancing the culture of a business.
Culture During COVID
The culture of a company may be even more important during the COVID-19 pandemic, as normal life is disrupted and people are subjected to the effects of a lack of social contact with others. There are also the financial hardships that some workers are facing due to altered work conditions and schedules, as well as changes to their household incomes and routines. So, even if you are doing financially well as a business owner, it can help to be sensitive to what your team members are experiencing in their lives. They may feel resentment if it appears that you are out of touch or rewarding yourself with flashy purchases while they work hard and still face challenges in life.
Are you considering selling your business? Get in touch with our M&A experts at Benchmark International to discuss how we can help you take your future to the next level.
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
ABOUT BENCHMARK INTERNATIONAL
Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $6B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from offices across the world, have assisted hundreds of owners with achieving their personal objectives and ensuring the continued growth of their businesses.