Growing Through Acquisitions While Retaining a Strong Culture

APi Group CEO Russ Becker sits at the helm of a publicly traded $6.5 billion company built through more than 90 acquisitions. Often when you grow by acquisitions, culture can be a challenge or worse: not even a focus. Yet, Becker and APi are known for focusing on the culture, values and fit of potential acquisitions from the beginning of the diligence process to ensure long-term success.

Becker puts acquisitions into two main buckets: transformational and transactional. He defines transformational mergers and acquisitions (M&A) as ones that change the entire business, much like the $3.1 billion acquisition of Chubb Fire and Security business in 2022. No matter the size, Becker is constantly looking at culture when he thinks about growing the business. In our latest episode of the Built-In podcast, FMI consulting president Scott Winstead talks with Becker about acquisitions, leadership training and how he works to create a cohesive culture across locations and business units. Adding companies through acquisitions can be tricky, but the APi team understands the importance of putting people first.

“If you don't get the culture, values and fit component of it right, you're going to continue to struggle with bringing that business and those folks into your family and feeling like you're part of the family,” Becker said. “And so, if somebody doesn't think that leadership development is the right thing for them or the right thing for their business, the chances of there being cultural alignment are probably pretty low. And we really openly encourage potential acquisitions to vet us just like we want to vet them so that they make sure that it's the right fit.”

One way Becker vets potential acquisitions is by personally touring companies and having dinner with managers or owners. By seeing how a warehouse is organized and how people interact with others first-hand, he can determine if a company’s culture and teams will ultimately make a good fit for APi.

Since his teams are so experienced in acquisitions, Becker encourages them to always treat people fairly when negotiating the terms of potential deals. “We really spend the time getting to know people and we invite really good people to join the APi family,” he says.

Another way the APi team works to ensure long-term success is by focusing on the field teams. Becker told an interesting story about a recent acquisition of a North Carolina-based company where a field staffer asked him during a townhall, “How do I know that you really care?”

“There's a lot of people that sit in my chair that really don't care, and they look at the people that are actually out doing the work like they're just an asset and just a number,” Becker said. “I've developed this deep regard for the men and women who are doing the work in the field and the many challenges they face daily. And having somebody ask you that question just really made me think. And I haven't stopped thinking about it actually since last week. And essentially my response was, my actions are going to have to show you that I care and everything that I do, and the words that I choose, what I say, how I spend my time, my actions are going to show you that I really care or not.”

To listen to our full conversation, check out the Built-In podcast.