Why I View Culture as the Ultimate Competitive Advantage
When I buy a business, I know that financials, systems, and strategies matter. But over the years, I’ve come to see culture as the ultimate competitive advantage. Culture is what determines whether employees stay engaged, customers stay loyal, and systems actually get adopted.
Why Culture is the Ultimate Advantage
Culture matters because it:
- Shapes employee morale and retention
- Strengthens customer experience through consistent behavior
- Defines adaptability to change and growth
- Creates long-term differentiation that competitors can’t easily copy
- Increases valuation by lowering turnover and risk
A strong culture outlasts strategy.
My Early Mistakes
In one acquisition, I dismissed culture as “soft.” Turnover spiked, morale collapsed, and customers felt the shift.
In another deal, I underestimated how much the seller’s personality defined culture. When they left, employees lost their anchor.
Both mistakes taught me that culture is the foundation, not a side note.
How I Evaluate Culture
- Observe how employees interact with each other and customers
- Ask about values and whether they’re lived or just words on a wall
- Study turnover and tenure metrics
- Look at whether accountability exists or is avoided
- Assess whether the culture aligns with my leadership style
How I Strengthen Culture Post-Acquisition
- Communicate values clearly and consistently
- Recognize employees for behaviors that align with the culture
- Preserve traditions that employees care about
- Address toxic behaviors quickly
- Lead by example culture is modeled, not mandated
Why Culture Impacts Valuation
Businesses with strong cultures are worth more because they’re stable and scalable. Buyers discount companies with toxic or fragile cultures.
Final Thoughts
I’ve learned that culture is the most durable advantage in acquisitions. It drives people, performance, and growth.
That’s why I evaluate it carefully and invest in it continuously.
I continue sharing my acquisition lessons at DrConnorRobertson.com, where I explain why culture, more than anything else, determines long-term value.