When I first started buying businesses, I spent nearly all my time thinking about strategy. I obsessed over growth opportunities, new product lines, cross-selling potential, and operational efficiencies. I believed that if I could map out the perfect strategy, the company would thrive no matter what.
Over time, I learned a hard but valuable truth: culture eats strategy for breakfast. A business can have the best strategy in the world, but if the culture is toxic, disengaged, or resistant to change, that strategy will never see the light of day.
Today, culture is one of the very first things I evaluate in any acquisition. It shapes everything that follows—from employee retention to customer loyalty to execution of long-term plans. In this article, I’ll share why I believe culture is more important than strategy, how I evaluate it before buying a company, and how I protect and build it after the deal closes.
Why Culture Matters More Than Strategy
Strategy lives on paper. Culture lives in people. Employees don’t show up every day to implement a five-year plan; they show up to work with colleagues, serve customers, and respond to the leadership environment around them.
If the culture is strong, even an average strategy can succeed. Employees rally together, innovate, and find ways to win. If the culture is weak, even the most brilliant strategy will fail under the weight of disengagement and resistance.
That’s why I’ve learned to prioritize culture above all else.
My First Wake-Up Call About Culture
One of my earliest acquisitions had a strong financial profile and a clear growth strategy. But I overlooked how toxic the culture had become under the previous owner. Employees didn’t trust leadership. Departments worked in silos. Turnover was high.
I assumed I could “fix” it quickly with a better strategy and communication. Instead, the culture resisted me at every turn. Employees were burned out and skeptical of new initiatives. It took me far longer to stabilize the business than I expected.
That experience taught me that culture isn’t a side note; it’s the operating system of the company.
How I Evaluate Culture Before Buying
When I’m evaluating a business, I go beyond financial statements and customer contracts. I spend time talking with employees, observing interactions, and asking questions about daily life inside the company.
Some of the signs I look for include:
- Employee engagement: Do people seem energized or checked out?
- Turnover rates: High turnover usually signals deeper cultural issues.
- Leadership respect: Do employees trust managers, or do they complain constantly?
- Collaboration: Do departments work together, or do they operate in silos?
- Customer-facing behavior: Happy employees create better customer experiences.
Numbers can hide a lot, but culture always reveals itself in how people talk and behave.
Why Culture Is Harder to Change Than Strategy
Another reason culture matters so much is that it’s harder to change. I can adjust a strategy with a new plan. Culture, on the other hand, is deeply embedded in habits, values, and unwritten rules.
That doesn’t mean culture can’t change, but it takes consistent leadership, clear communication, and often years of effort. That’s why I want to buy businesses where the culture is at least healthy enough to support growth, not one where I’m fighting dysfunction from day one.
How I Protect Culture After Closing
When I take over a business, I make culture a top priority. My goal isn’t to impose a new culture overnight—it’s to preserve what works while gradually introducing improvements.
I do this by:
- Listening first: I ask employees what they value most about the company.
- Respecting legacy: I honor traditions and practices that matter to staff.
- Modeling behavior: I show transparency, accountability, and respect through my own actions.
- Recognizing wins: I celebrate progress, no matter how small.
- Addressing toxicity quickly: If there are toxic managers or behaviors, I confront them early to protect the broader culture.
These steps reassure employees that I value them and their environment, not just the bottom line.
The Link Between Culture and Customer Experience
I’ve noticed a direct connection between culture and customer loyalty. When employees feel valued and engaged, they treat customers better. When they’re disengaged or fearful, customers notice immediately.
That’s why culture isn’t just an internal issue; it directly impacts revenue. Businesses with strong cultures create loyal customers, which compounds value over time.
Mistakes I’ve Made With Culture
I’ve made mistakes by underestimating how entrenched cultural problems can be. In one acquisition, I thought I could fix the culture with a few changes in leadership structure. Instead, it required a multi-year effort to rebuild trust.
I’ve also made the mistake of moving too fast, trying to impose new systems before employees were ready. That created resistance that slowed progress. I’ve since learned that cultural change is gradual and requires patience.
Why Culture Multiplies Strategy
The best lesson I’ve learned is that culture multiplies strategy. A great strategy with a strong culture becomes unstoppable. Employees believe in the mission, execute with energy, and adapt as needed.
On the other hand, a great strategy with poor culture collapses under resistance. Culture doesn’t just “eat” strategy—it determines whether strategy has a chance to succeed at all.
Final Thoughts
After years of acquisitions, I’ve come to believe that culture is the single most important factor in whether a deal succeeds. Financials tell me the past. Strategy tells me the plan. But culture tells me the truth about the future.
That’s why today, I put culture at the center of my diligence. I want to buy businesses where employees are engaged, customers are respected, and leadership has earned trust. Because in the end, culture doesn’t just eat strategy—it fuels it.
I continue sharing my lessons on acquisitions, private equity, and real estate at DrConnorRobertson.com, where I document the playbook I use to build businesses that last.