We asked five PE-backed businesses about the challenges they face in building and maintaining a strong company culture. Here’s what they said.
Here’s what they said.
- Speed vs. Sustainability
“The fast pace of PE-backed growth often forces us to prioritize immediate results over long-term cultural sustainability. We’ve seen that companies struggling with cultural integration post-acquisition often face misalignment between leadership and employees.” – CFO, Mid-Market PE-Backed Firm.
A 2023 McKinsey report supports this, showing that 70% of PE-backed firms struggle with cultural integration after acquisition.
- Diverse Workforce, Differing Expectations
“Scaling quickly means hiring talent across different regions, each with unique expectations on leadership, communication, and work-life balance. Without a clear cultural framework, it’s easy for teams to become siloed.” – CHRO, Tech Scale-Up
- Leadership Transitions and Cultural Drift
“Leadership turnover is a given in PE-backed firms. The challenge is maintaining consistency in cultural priorities when new executives come in with different leadership styles.” – CEO, Global SaaS Business
Bain & Company reports that up to 60% of newly acquired businesses see CEO changes within two years, emphasizing the need for a defined, adaptable cultural framework.
How Recruitment Strategies Can Support Cultural Alignment
Recruitment is not just about filling positions, it’s about ensuring that each hire contributes to the company’s vision, values, and long-term goals. Here’s how tailored talent strategies can support cultural alignment in PE-backed businesses:
Hiring for Cultural Fit and Cultural Add
“We look for candidates who don’t just fit our existing culture but who can also challenge and enhance it, this takes longer but pays dividends in future. It also ensures our culture evolves in a way that supports long-term business growth.” – Head of Talent, High-Growth FinTech
Data-Driven Talent Decisions
Using AI-driven assessments, behavioural analytics, and psychometric testing, companies can better understand how candidates align with their culture. Research from the Harvard Business Review suggests organizations using data-driven hiring practices improve cultural retention rates by 23%.
Embedding Culture into Onboarding and Retention
“A structured onboarding process that clearly communicates our values from day one has helped us maintain alignment as we scale, we really took advantage of the knowledge our recruitment partner had with this, and they designed the whole onboarding process for us and it was a game-changer.” – COO, PE-Backed Healthcare Company
Diversity and Inclusion as a Growth Lever
A 2020 BCG study found that organizations with above-average diversity on their leadership teams generated 19% higher revenue from innovation. Although a sensitive topic right now, the numbers and statistics tell the true story. Embedding DE&I strategies into recruitment helps companies remain adaptable and resilient.
Aligning Compensation and Incentives with Cultural Goals
“Beyond financial targets, we reward collaboration, leadership development, and long-term thinking. This keeps our cultural priorities front and centre.” – VP of People, Global Tech Firm
For PE-backed businesses, don’t think of culture as a chore, it’s a critical driver of performance, retention, and long-term success. A strong culture doesn’t happen by chance; it is cultivated through intentional hiring, leadership alignment, and strategic reinforcement.
Businesses that invest in cultural alignment today will not only drive sustainable growth but also foster innovation, resilience, and high-performing teams that can adapt to the evolving demands of a PE-backed environment. The ability to embed culture into every facet of the business from recruitment to leadership, transitions will determine which companies merely survive and which ones thrive.
