The recent budget has introduced significant changes to the mergers & acquisitions (M&A) environment for small and medium enterprises (SMEs) and privately-owned businesses across the UK. With fiscal adjustments affecting capital gains and borrowing costs, opportunities and challenges lie ahead for companies seeking to grow through acquisition.
However, while the financial aspects of M&A are always critical, long-term success in sectors such as facilities management requires a deeper, more holistic approach. These are what truly create successful foundations upon which to build, and allow us to forge a path towards a prosperous and mutually beneficial future.
That’s something we’re intimately familiar with here at Churchill Support Services, and that I’ve continually championed within my role as Chief Financial Officer. It’s an approach that I feel not only sets us apart, but that truly resonates in what can be a money-driven market.
With our latest article, we’ll explore why aligning cultural fit, supporting growth, and, crucially, understanding the emotional attachment of vendors are essential for a successful acquisition. Acquiring companies that take the time to engage with vendors and integrate their concerns can build lasting value that goes beyond mere numbers.
While it’s difficult to fully distil that growth-focused acquisitive mindset, there are key things that remain steadfast in all the approaches you make. Let’s break those down.
For many SME owners, their business represents decades of hard work, dedication, and personal sacrifice. When the time comes to consider a sale, vendors often face complex emotions, including pride, guilt, and concern for the future of the teams that helped them build the business.
As such, sellers may feel torn between the financial rewards of selling and the fear of what the future may hold for their employees. A compassionate buyer who recognises this emotional attachment and engages the vendor thoughtfully can add immense value to the process.
It’s not only about achieving a fair purchase price; it’s about honouring the legacy the vendor has built and ensuring that the people who contributed to it are well-supported post-completion.
Beyond financial alignment, cultural fit plays an integral role in successful acquisitions. Cultural compatibility between the buyer and the acquired business can facilitate smoother transitions, higher employee engagement, and better client retention.
When companies share values, employees from both sides of the acquisition can more naturally align with the shared goals of the new organisation. During the due diligence phase, assessing cultural fit is just as important as reviewing financial metrics.
This means understanding how teams work, what motivates them, and the overall ethos of the target company. There are several key questions I take the time to consider at this stage, which include:
By paying attention to these details, acquiring businesses can avoid cultural mismatches that could destabilise the integration process. Prioritising cultural fit also helps retain talent from the acquired company – a particularly important factor in the facilities management sector, where trusted employees are the backbone of client relationships.
A buyer who appreciates and respects the acquired company’s unique culture sets the stage for a more harmonious and productive integration.
A thoughtful approach to mergers & acquisitions involves keeping the vendor engaged not only during the transaction but throughout the onboarding and integration phases. By involving the vendor in conversations around team matters, onboarding, and client relationship transitions, buyers show respect for the vendor’s insights and the relationships they’ve built over the years.
Vendors can provide invaluable context about the team, key client dynamics, and the inner workings of the business. Including them in these conversations demonstrates a commitment to preserving what they have built and often makes the integration process more effective.
It’s also a reassuring presence and helps create that common ground that can often be found lacking in more traditional acquisitions. It imbues a sense of continuity and stability, which is critical to maintaining morale and client trust, as well as maintaining the environment that staff have come to expect in working there.
Post-completion, encouraging the vendor to remain involved – perhaps in an advisory capacity focused on people and team matters – can also provide additional support for the newly integrated team.
This involvement can alleviate some of the concerns vendors often have about their team’s welfare, offering a measure of comfort that the legacy they’ve established will continue to thrive under new ownership.
In many M&A scenarios, there is a temptation to prioritise cost-cutting measures to extract immediate synergies. However, in the facilities management sector, where business success hinges on continuity, client satisfaction, and employee engagement, an aggressive approach to reducing expenses can backfire.
Rather than focusing on immediate synergies, successful buyers should emphasise investment in growth opportunities that strengthen the acquired company’s capabilities over the long term. That’s beneficial in both the short- (in that the vendor can see plans being put into place) and long-term (in that you’re preserving the value and reputation of the existing brand).
A buyer who approaches an acquisition as a platform for growth rather than as a means to cut costs will create more value in the long run. This can include investing in new technologies, expanding service offerings, or training staff to support career development.
For the acquired employees, this signals a commitment to their future, fostering a sense of security and loyalty. Furthermore, this growth-focused approach contributes to preserving the vendor’s legacy by ensuring the business continues to thrive and evolve.
One of the greatest contributions a buyer can make is to create a platform for growth for the newly acquired team. When employees see opportunities for professional advancement and skill-building, they are more likely to remain engaged and motivated.
This commitment to employee development is particularly crucial in facilities management, where skilled, experienced staff are essential to maintaining quality and service standards.
Buyers should consider implementing programmes for skills training, leadership development, and career progression, signalling that the business is committed to its people and their future. This approach not only helps retain talent but also builds a strong, integrated workforce that is better equipped to drive long-term growth and success.
By investing in the professional development of the acquired team, the acquiring company is not merely “taking over” a business; it is building a cohesive, future-ready workforce. This platform for growth enhances the business’s overall resilience and supports the continued success of the vendor’s legacy.
The recent budget changes may have shifted the financial considerations for SME M&A, but the core principles of successful acquisitions in the facilities management sector remain the same: focus on people, prioritise growth, and respect the legacy of the business.
For buyers, this means taking a measured, compassionate approach that goes beyond spreadsheets and financial metrics. By valuing cultural fit, engaging the vendor thoughtfully, and investing in the future of the acquired team, buyers can create enduring value and ensure a successful transition.
For vendors, knowing that their business and team will be cared for can provide much-needed peace of mind in what is often an emotional decision.
For business owners who may be contemplating an exit—or even those who aren’t yet considering it but are curious about the opportunities a carefully managed acquisition could offer—we invite you to connect with us.
At Churchill Support Services, we believe in a holistic, people-centric approach to acquisitions that respects the legacy you’ve built and prioritises the welfare of your teams. Our approach isn’t just about transactions; it’s about partnerships and sustainable growth.
If you’d like to learn more about how we can work together to support your business’s future, please reach out for an open conversation. We’d be delighted to discuss how our tailored, empathetic approach to M&A could align with your goals.
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