Culture isn’t “soft.” It determines: Retention Integration Continuity Ignoring cultural alignment in due diligence guarantees friction post-close. Culture drives continuity.

Premium prices demand premium due diligence. When human capital drives value, certainty requires: Conversations Commitments Structure Absent that, the premium is speculation. Price reflects certainty — or lack of it.

One of the simplest due diligence questions is also the most avoided: “Do you want to stay?” If that question isn’t asked — and answered honestly — due diligence is incomplete. Silence is not consent. Assumptions are not answers.

Employment relationships don’t transfer like equipment or IP. They continue only if people consent. Acquirers who treat people as assets often discover — too late — that people behave like owners of their own futures. Control isn’t commitment.

Confidence is useful.Hubris is costly. Experienced buyers ask uncomfortable questions early — because they know assumptions are where deals break. Overconfidence doesn’t reduce risk.It hides it. Experience tempers confidence.

If value depends on specific people, retention risk belongs in: Price Structure Closing conditions Ignoring it doesn’t make it disappear.It just makes the price wrong. Valuation without retention analysis is incomplete.

What a seller tells you is a starting point — not verification. Due diligence requires independent validation, especially around: Who runs the business Who holds client relationships Who can walk Believing a story isn’t due diligence.Testing it is. Trust is not a due diligence substitute.

Equity transfers automatically.People do not. Experienced acquirers know that human capital is voluntary — not contractual by default. Assuming people will stay without asking them is not optimism.It’s negligence. People choose to stay. Leaders don’t assume.

Due diligence is often framed as a financial exercise. In reality, it’s an exercise in testing assumptions — especially around people, continuity, and leadership dynamics. This series focuses on the diligence gaps that don’t show up in spreadsheets but determine whether value actually survives closing.