Acquisition issues: Operational changes to the acquired firm's top management team and subsequent organizational performance

Acquisitions continue to be an important topic for management scholars and practitioners alike. Managers are actively involved in both sides of the acquisition equation (target and acquirer) from valuation (preacquisition) all the way through to integration (postacquisition). During this tumultuous period, it now appears that the top management team of a successful target firm is integral to postacquisition success. The authors examine the role that "imposed" changes placed on the newly acquired firm has on the retention of the top management team. The compulsory changes appear to be a key factor in the turnover of top management team members and thus diminish the value of the acquired firm. Furthermore, this study suggests that top management team turnover detrimentally affects postacquisition firm performance.