For Robin Hau, president and CEO of USWired, business owners should look at cultural fit more closely when considering an acquisition.
Hau in early 2022 announced that Quatrro Business Support Services (QBSS) was buying the MSP firm and making it one of its subsidiaries. He said multiple factors influenced his decision to pick Quattro over other suitors. That included a high-end valuation and equity opportunity, as well as QBSS' track record buying and selling other MSPs. But partners mulling a deal should never overlook cultural alignment, Hau said. He added that USWired experienced growing pains around culture when it made an acquisition in years prior.
"Cultural fit encompasses a wide range of factors, such as leadership styles, communication styles, employee attitudes and organizational values," Hau said in an interview with Channel Futures. "A misalignment in any of these areas can lead to conflicts, misunderstandings, and ultimately, a failed integration."
Hau will share the story of the USWired acquisition and his M&A advice to partners in a session titled, "Finding Your Magic Number and Surviving the M&A Process," at the Channel Partners Conference and Expo, May 1-4, at the Venetian in Las Vegas.. Rick Murphy, CEO and managing partner at Cogent Growth Partners, will join him on stage.
[Editor's Note: See and hear more than 150 channel visionaries and experts speaking at the Channel Partners Conference & Expo. The event also features more than 375 ICT companies in the massive expo hall. Register now for the world’s largest independent channel event, May 1-4, at the Venetian in Las Vegas.]
Hau answered several questions from Channel Futures about the content of their talk.
Channel Partners: You note in your session preview that “getting too preoccupied with top-line revenue growth could spell disaster vs. focusing on gross margin and net cash results.” Why?