Avoid being a ‘culture terrorist’ in M&A transactions by 2025

success of the integration over the long term.”

Spillane added that sellers should aim to maximise their EBITDA, a financial metric used to measure a company’s overall financial performance, or tap into a specific niche to make the business more attractive to potential buyers.

“Know that sort of thing and reduce debt … if you’re looking to sell, you wouldn’t want a lot of debt, your EBITDA would be maximised,” Spillane said.

Meanwhile, Tech Data A/NZ country general manager Craig Ashwood advised sellers to ensure they understand the difference between Cash Flow and EBITDA, as it is crucial for business operations and valuation during a sale.

The advice from Ashwood, Spillane, Stafford, and Page falls in line with what Post Merger Integration (PMI) consultancy businesses believe — that a business’s culture is fundamental to the success of a merger or acquisition.

Chris O’Donnell, one of the founding partners of PMI, said culture stratigraphy, or the mix of the unique cultures of two separate businesses is a vital aspect when considering M&A.

“By taking that approach and understanding the unique characteristics of different units or businesses involved in the deal, you can map out how sticky culture is and what could be the challenges and opportunities,” O’Donnell said.

He also highlighted that culture has become a significant factor in successful M&A deals, due to the need for businesses to operate seamlessly together post-transaction.

O’Donnell said, “Culture is the glue. It’s about the leadership team signalling very early on ‘This is the culture we’re like as a new combined entity’”.

Jon Williams, a director at PMI consultancy Integrity North, added that businesses need to ensure they approach M&A deals with a clear understanding of the cultural implications, as it can make or break not just the deal itself, but the entire future of the business.

“It’s not just about recruiting and retention, it’s also about culture – whether that’s from an employee, a customer, or a vendor perspective, you need to understand the people who are part of the deal,” he said.

His fellow director at Integrity North, Geoff Berridge, added that culture often determines the success of an M&A deal, with failure to merge cultures often leading to the break down of the integration and ultimately, the deal itself.

EDGE 2025 took place in early July, focusing on what the edge of IT looks like over the next four years. The full panel discussion on the realities of M&A will be available on-demand from 1 August.