Cultural fit is quite possibly the most critical driver of merger and acquisition success for architecture, engineering, and construction (A/E/C) firms…but it can also be the hardest element to measure in advance, while you still have time to rethink the deal. 

To get ideas for making M&A transactions work better for both parties, we sat down with Mike Matthews, P.E., FACEC. Mike is a Senior Consultant with PSMJ Resources where he focuses on strategic planning, mergers & acquisitions, and ownership transition. 

Prior to PSMJ, Mike served for almost 20 years as a CEO of an A/E firm, which grew under his leadership from $4 million to over $40 million, with Matthews overseeing multiple acquisitions for the firm before guiding the firm’s successful sale to a $3.7 billion conglomerate. 

So what’s Mike’s advice for ensuring cultural fit with acquisitions? “It can be simple. I look for authentic leadership,” stated Matthews. “Too many firms have a list of core values nicely printed and framed in the office lobby, but then they don’t do anything to actually live by them. The key to aligning two firms’ cultures is to take a hard look at how each practice what they preach.”

Mike knows a thing or two about leadership. He earned the McCabe Leadership Award from the Virginia Council of CEOs, Engineer of the year from the Richmond (Virginia) Joint Engineers’ Council, a Distinguished Alumnus award from Old Dominion University, and the Secretary’s Certificate of Recognition from Secretary of State, Madeleine Albright for his efforts after the bombing of the U.S. Embassy in Tanzania. He is also a Ph.D. candidate at Regent University, with a focus on Organizational Leadership.

Mike urges A/E/C firm leaders who are considering an acquisition to candidly ask a potential seller’s leadership team how they “live” by their core values. “Communication was a key part of our firm’s core values when I was a CEO. As an example, I used to hold regular breakfast meetings with various groups and teams throughout the company to really share our firm’s vision and discuss our core values. That is the sort of commitment to values and vision that I looked for in acquisitions.” stated Matthews.

Mike developed and taught an MBA class at the University of Richmond entitled Professional Services Management. His other instructional engagements have included guest lectures at numerous universities, industry conference presentations, and participation as an expert panelist on a variety of topics. After serving for two years on the national executive committee for the American Council of Engineering Companies, Mike was recognized by the organization as a Fellow. 

Will a merger or acquisition help you achieve your firm’s growth goals or your personal objectives? Even if you've been through the M&A process before, it's easy to forget a critical issue to discuss with your counterparty. So download and keep PSMJ's handy A/E/C Mergers & Acquisitions Critical Issues Checklist to make sure nothing falls through the cracks and your transaction closes without a hitch.

You can learn more about Mike’s background and areas of advisory expertise here.

How can Mike help you? PSMJ’s team of A/E/C business management experts are here to help you to achieve your objectives. Schedule a complimentary and confidential consultation with Mike Matthews here to discuss specific questions and challenges.