A Buyer’s Perspective — Why the Human Side is More Important Than Money in M&A Transactions
Mar 19, 2024
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This podcast delves into the importance of the human side in business, focusing on cultural diligence for successful acquisitions, balancing qualitative decisions with quantitative metrics, working with owners post-acquisition, and building relationships. It highlights the significance of valuing people and culture in M&A transactions, emphasizing emotional support and vulnerability in the industry.
Prioritizing people and culture is crucial for sustainable growth in M&A transactions.
Balancing qualitative decisions with traditional quantitative measurements enhances acquisition success.
Building lasting relationships and maintaining strong values are essential for retaining top talent in businesses.
Deep dives
Steel River: A Unique Model for Building a Holding Company
Steel River, led by co-founder Austin King, operates as a permanent holding company for industrial services. This innovative model focuses on long-term decision-making, creating a home for blue-collar workers with exceptional culture. With a commitment to thinking in decades rather than years, Steel River aims to maximize value for companies they acquire, providing employees a rewarding career path.
Balancing Between Search Fund and Independent Sponsor
Steel River navigates between the roles of a search fund and an independent sponsor, with committed capital and the flexibility to operate in acquired businesses without a specific hold period. By partnering with family offices, they benefit from long-term thinking, flexibility, and a more creative capital structure, aligning with their philosophy of building lasting value.
Focus on People and Culture for Long-Term Success
Steel River's key focus lies in prioritizing people and culture for sustainable growth. They emphasize employee and customer satisfaction metrics as paramount indicators of success. By creating a strong safety culture and preserving their values, Steel River aims to retain top talent and maintain a cohesive organizational culture.
Lessons from Personal Loss: Advocating for Openness and Support
Austin King shares personal insights on coping with grief and loss, emphasizing the importance of seeking support from partners and loved ones during challenging times. He acknowledges the value of vulnerability and openness, highlighting the need to lean on others for strength and understanding. By embracing empathy and honest conversations, individuals can navigate difficult experiences with resilience.
Future Vision: Prioritizing Employee and Customer Satisfaction
Looking ahead, Steel River remains focused on aspiring to become the premier lifting platform nationally, driven by employee and customer satisfaction. With a commitment to attracting top talent and accelerating deal flow, their goal is to grow strategically while maintaining a culture of excellence and customer-centric service.
This edition of M&A Talk offers a refreshing perspective on what really matters in a business – the people. Austin King discusses topics that impact a seller and what his investment firm considers when making acquisitions in the industrial services sector. He discusses how cultural diligence can ensure people and culture will mesh, how to balance qualitative decisions with traditional quantitative measurements, working with owners who want to remain with the business part-time, and how building relationships impacts business.