Leadership During the Deal: Why M&As Are the Ultimate Test of Vision and Culture
May 27, 2025
Contributed by David MillerOff-site link., an EO APAC Platinum One Bridge chapter member, is the founder of Alchemy of ScaleOff-site link., where he helps entrepreneurs unlock both the method and the magic required for business growth. He previously scaled multiple companies and now coaches elite growth-seeking CEOs and their teams.
Throughout my entrepreneurial journey with multiple acquisitions under my belt, I’ve discovered something profound about mergers, acquisitions, and spin-offs: they reveal the true nature of leadership more clearly than almost any other business activity.
While most people focus exclusively on the financial aspects of M&As, which are wildly important, I’ve learned that success hinges on something far less tangible but infinitely more valuable — the alignment between strategic vision and cultural integration.
What You’re Really Buying: Beyond Revenue
When acquiring a company, you’re purchasing six distinct components: time, customers, A-players, cross-selling opportunities, operational efficiencies, and team intelligence.
Of these, time is the most valuable element — and it’s impossible to obtain any other way. You’re buying all the accumulated time it took to build that customer base, develop expertise, and refine systems.
During a leveraged buyout, I discovered something extraordinary. The company we were buying had subject matter expertise that aligned to a small service line we had recently started. They weren’t even utilizing this expertise in their model—nor was it factored into their sale price. After integration, this unplanned synergy increased our revenue by almost US$3 million and profits by approximately US$900,000.
That’s the magic of strategic M&As: Sometimes the most valuable assets aren’t visible on the balance sheet.
My Third Acquisition: When Alignment Falls Apart
Not every deal goes smoothly. In my third acquisition, I made a critical error: I was simply buying revenue for revenue’s sake. The seller committed to providing 40-80 hours of work after closing, then planned to walk away. I naively assumed he would remain available beyond that period, but once he put in the agreed hours, he was completely unwilling to assist further — even if we paid him to help with crucial client communication.
Since I had paid all cash upfront (unlike my first two acquisitions), he had no financial incentive to ensure the long-term success of the integration. That taught me something crucial about seller motivation: When someone wants to exit quickly with cash, it’s important to understand where they fall on the spectrum of their confidence in the business’s viability to operate independently and absolving themself of problematic issues within the business.
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