Why Culture Matters in an Acquisition

An in-depth analysis by our President, Shane Snyder

Back in September, Barcoding, Inc., announced the acquisition of Danforth Systems, a Houston-based mobility solution provider. We called it a strategic acquisition, one that would strengthen our position as the leading system integrator, as well as expand our RFID offerings and support for our customers and partners.

All that was, and still is, true. Danforth Systems, now Barcoding Texas, is an established provider of innovative mobility solutions for data collection. They were a proven company with a strong reputation for integrity in the marketplace of one of the fastest-growing economies in the United States. They were a perfect partner for acquisition.

From a business standpoint, the collaboration made sense.

But “from a business standpoint” is not the only one from which we evaluate an acquisition partner.

Culture is King
Our central tenet here at Barcoding, Inc. is simple: People, Process, Technology. But, it’s always the people who come first in that equation. Likewise, when we’re considering an acquisition, culture is the single biggest thing we’re evaluating.

More than 50 percent of what we assess in a potential acquisition partner is their culture, and how it will mesh with the kind of environment we’ve worked hard to make our hallmark. Both sides have to figure out if we’d want to dance together for a long time, and that’s no quick-trigger call. It comes from months of discussion and getting to know each other.

There are so many things to consider when you’re working toward a merger or acquisition—many of them valid, important business matters that have to be fully vetted.

And yet, culture is the hardest part. It’s that important.

I believe one of my primary responsibilities as the President of this company is to help develop and foster the culture in our organization. Why? Positive culture breeds all different kinds of success, including having happy employees who take pride in their work and truly believe in the mission of the company.

Positive Culture Fosters Growth
At Barcoding, Inc., through the innovation and dedication of our people, we’ve seen approximately 300 percent growth in the last five years. Growth is fun, but it brings a lot of challenges and chief among them is maintaining the cultural integrity of our organization.

Quite simply: Our people—our culture—led to this growth. They will continue to lead to future growth. The future of Barcoding, Inc. and our place in the Supply Chain universe depends on it. So, yes, it really is that important.

A few weeks ago, I asked Dan Tarpey from Barcoding Texas why he made the choice to join our team and become a part of the Barcoding, Inc. family.

His answer was one word, but it came through loud and clear. “People,” he said. It was our people.

Read more about our acquisition of Danforth Systems, now Barcoding Texas.

Barcoding, Inc. 8th Annual Executive Forum