Corporate culture has long been recognized as a driver of performance – but in mergers and acquisitions it can be the hidden force that makes or breaks the deal. As M&A activity accelerates, culture is turning from an integration hurdle to a core value lever. Drew Seaman, managing director at Hunt Scanlon Ventures, explores some fresh insights from McKinsey & Co.
McKinsey’s 2025 M&A Annual Report outlines a compelling reality: culture is one of the most underestimated sources of value in an M&A transaction. “An organization’s culture – or the common set of behaviors, mindsets, and beliefs that shape how people work and interact – is a driving force for its success,” the report noted.
Despite this, McKinsey warns that “culture is overlooked in discussions about M&A,” and this neglect carries consequences.
According to the report, lack of cultural fit and organizational friction are the most common reasons integrations fail to meet value creation expectations. When culture is mishandled, “roles may be conflated, processes may become confusing, top talent may exit, performance may suffer, and the intended value from M&A may be at risk,” McKinsey noted.
It is a theme that Hunt Scanlon Media is focusing on at its annual culture awards event, The Culture Edge: Driving Enterprise Performance, on June 18 at The Harvard Club of New York. Senior leaders from companies like Google, Northwell Health, Blackstone, and Philip Morris International will discuss how embedding culture into leadership, strategy, and transformation efforts drives measurable business impact.
One recurring message: culture is no longer a soft initiative – it is a performance framework. Companies that embed cultural insights into executive decision-making are better equipped to adapt, scale, and compete in a volatile environment.
Diagnosing the Disconnect
McKinsey outlines three core actions executives should take to integrate culture effectively: diagnose how work gets done, set cultural priorities, and hard-wire and support cultural change.
“Value is more than just financial upside – it is also about how quickly the acquired team can get aligned, retain top talent, and contribute to enterprise performance. Culture is the accelerant.”
Early cultural diagnostics are key. McKinsey recommends using tools like employee surveys, leadership interviews, and focus groups to assess how decisions are made, how people are motivated, and how accountability functions.
“Leaders shouldn’t rely on gut instinct,” the report says – instead, they must establish “an objective set of cultural criteria at the very start of the planning process.”
From Insight to Integration
Once cultural data is collected, the next step is to define cultural priorities for the merger. McKinsey urges leadership teams to ask: What elements of our culture are critical to preserve? What behaviors or mindsets will we need to evolve to succeed together?
This step often requires identifying specific changes in values, decision-making, collaboration, and performance management. Leaders must personalize the transformation story and model new behaviors from the top. McKinsey emphasizes that without this alignment, cultural friction will become an obstacle to synergies and retention.
“We’re seeing a shift in how value is defined,” said Drew Seaman, managing director at Hunt Scanlon Ventures. “It is more than just financial upside – it is also about how quickly the acquired team can get aligned, retain top talent, and contribute to enterprise performance. Culture is the accelerant.”
Operationalizing Culture for M&A Success
McKinsey urges dealmakers to move beyond culture as a downstream communication topic. Instead, it should be “hard-wired” into operating models. This includes aligning KPIs to desired cultural behaviors, building cross-functional task forces, and appointing cultural integration leads.
For example, if agility and collaboration are post-merger priorities, initiatives might include clarifying decision rights, revising governance processes, or redesigning onboarding to reinforce behavioral norms. “The top team will need to serve as a role model for behavioral changes,” McKinsey noted.
Organizations that treat culture with the same rigor as financials and legal due diligence are more likely to retain talent and exceed synergy targets.
“The companies that win are the ones that treat cultural alignment with the same urgency as financial forecasting or systems integration,” Mr. Seaman added. “If you miss the culture, you miss the value.”
Article By
Drew Seaman
Drew Seaman is a Managing Director at Hunt Scanlon Ventures. He is responsible for co-managing the firm’s investment portfolio of executive search, talent acquisition, private equity, and investment firms. In addition to sourcing new opportunities and managing the firm’s current investments, Drew leads the technical aspects of client engagements, including valuation and financial analysis and the preparation of investment marketing materials.
Drew began his career in wealth management before joining BMO Capital Markets as an Investment Banking Associate in the Financial Institutions Group. Drew assisted with transaction execution and prepared comprehensive valuation and financial analyses for clients in the specialty finance, asset and wealth management, and insurance sectors.
Drew earned a B.A. in Economics from DePauw University, where he was quarterback on the varsity football team. He earned his M.B.A. with concentrations in Finance and Accounting from NYU’s Stern School of Business. Connect with Drew.
