TVG

“We make pretty good money here, but it’s time for me to sell. But understand this—if a buyer won’t commit to preserving my culture, I’m not interested at any price.”

I met Mason (not his real name) at a luncheon in Clarksville sponsored by a local ministry we were both involved with. Neither of us had come to the event to talk business, but as we casually talked over lunch, Mason asked what I did for a living. When I told him, he shared his interest in selling his business over the next year or two. We scheduled a time for me to visit his office to get a first-hand view of his operation.

I’m not sure I’ve ever seen a warehouse as clean as Mason’s. The floors were spotless, the painted concrete showed no signs of wear and tear, and the inventory was neatly stacked in 18-foot-high racks. All employees wore long-sleeve golf shirts bearing the company logo. The break room had four modern vending machines (one devoted entirely to healthy snacks) and two commercial-style Keurig coffee makers. It was obvious that Mason cares about his employees—and his employees care about the company. As we entered his office to talk privately, I said, “Mason, this is about as clean a business as I’ve ever seen.” He replied, “We feel like everything we do should honor God—how we treat our customers, our employees, and even our facility. It all belongs to Him anyway.”

Mason wasn’t the kind of guy who made a stranger uncomfortable talking about his faith. He let his actions speak for him. After seeing the operation up close, I could better understand why he’d told me earlier that he would only sell to a buyer who understood his culture.

I don’t try to forecast market health, but I see no signs that 2026 won’t be a good time to bring a company to market—especially if the company meets the components sophisticated buyers value: a record of sustained profitable growth, a solid management team, and a diverse customer base. Mason’s business checks those boxes, so I expect we’ll have multiple bidders for the company.

But…

I have to admit, there isn’t a foolproof way to gauge the cultural fit so important to Mason. Of course, he and potential buyers will need a lot of quality time together—but when I say quality time, I don’t mean a couple of good steak dinners. Quality time means an extended period during which Mason can evaluate the nature and practical implications of the potential buyer’s management style. To do that, we’ll likely visit other companies the buyer has acquired to see if—and how—the buyer fosters its culture. Put another way, while the buyer will be doing due diligence on Mason’s company, Mason will be doing a fair amount of due diligence on the buyer.

Mason knows that once he sells his company, he’ll have to walk away from it. But by asking the hard questions up front and taking the time to evaluate the qualitative factors—not just the money—Mason will make the right call. Culture counts, even if it’s not on a Balance Sheet.

 

Tennessee Valley Group

Jim is an attorney (non-resident status with the Missouri Bar) and though he no longer practices law, he has read and negotiated enough legal documents to fill a cargo tanker. He has an MBA from Harvard Business School and knows how Wall Street and private equity operates. Jim is a Tennessee Supreme Court Rule 31 listed general civil mediator with tons of experience helping business owners (large and small) work through sensitive problems to achieve winning results. He is the author of "Home Run, A Pro's Guide to Selling Your Business, Seven Principles to Make Your Company Irresistible."