Preventing managerial turnover in the target firm after an acquisition is very important if one of the acquiring firm's objectives is to gain new skills or knowledge from the target.

Question

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If the acquiring firm aims to gain new skills or knowledge from the target, it is crucial to retain the experienced managers in the target firm who possess these capabilities. They can help integrate the operations and transfer their knowledge to the acquiring firm's managers. Thus, preventing managerial turnover in the target firm is essential.

Preventing Managerial Turnover in the Target Firm After an Acquisition