Advisers planning to sell their businesses are encouraged to focus on cultural alignment over financial gains to ensure successful outcomes.
- Victoria Hicks stresses the need for a clear strategy before engaging with potential buyers.
- Understanding the buyer’s culture is crucial, as post-sale complications can arise without it.
- Experience in successful business exits highlights the importance of careful planning.
- The emphasis on culture aims to protect clients, staff, and the future vision of the business.
At the Personal Finance Society conference in Manchester, Victoria Hicks, CEO of Melo Advisory Services, highlighted that advisers looking to sell their businesses must prioritise understanding the cultural fit with potential buyers. Emphasising a ‘culture before cash’ approach, she argued that this alignment is critical for ensuring the well-being of clients and staff post-sale, as well as preserving the business’s core values.
Hicks, with personal experience in business exits, advised advisers to thoroughly investigate the cultural dynamics of a prospective buyer. According to her, while financial considerations are important, the lack of cultural compatibility can lead to significant challenges and failures after the sale. Hence, a clear strategy focusing on both cultural and financial aspects is vital.
Sharing her insights, Hicks remarked, “Getting your exit right is so important to me. I have been where you are. I have been through the process. Have the successes and the scars to show for it.” Her firsthand experiences serve as a testament to the potential pitfalls of neglecting cultural evaluation in business dealings.
The PFS Conference stresses that fostering cultural alignment in business sales is a strategic necessity.
