Over the past 24+ years of advising sell-side M&A transactions in the middle-market of aerospace and defense, we’ve worked with many talented business owners. One theme we continually see, at almost every company that we sell that is a leader in its field, is a strong company culture. And most often, the culture is built on a small list of core goals that everyone at the company believes in and works by each day.
A great company culture can make a business extremely valuable. A great culture can lead to many positive tangible results, including but not limited to strong earnings, long tenure, and a dedicated workforce with keen knowledge and skills. Conversely, we have seen poor cultures stall performance and productivity and impact quality, reputation, earnings, and valuations.
Culture in a middle-market aerospace and defense company is not something that can be created or changed quickly. Culture can take years to create and is often built slowly based on the actions and words of one or a handful of leaders. Buyers know the value of a good culture. Similarly, buyers can see when there is a poor or weak culture and they will usually discount their prices accordingly.
If you are considering selling your middle-market aerospace and defense company within the next 5 years, be sure to look at your culture today and see if it is where you want it to be when you start to talk with buyers.
Have a great day,
Ryan Kirby
Junior Partner
