JEFFREY A. KRUG KEYNOTE SPEAKER Effects of Mergers and Acquisitions on Top Management Teams Dr. Krug is a nationally known keynote speaker on the leadership and top management team effects of mergers and acquisitions (M&As). He provides keynote addresses to large and small organizations, top management teams, and boards of directors. Dr. Krug focuses on how organizations can design strategies for managing leadership issues in companies involved in M&As. His keynote addresses and speeches are customized to fit the company or group’s competitive situation and provide a roadmap for firms as they deal with post-merger leadership and top management team integration issues. Click here for books and articles by Dr. Krug on this topic. Other Public Speaking, Executive Seminars, and Workshops on Strategic Management and International Business
Effects of Mergers and Acquisitions on Top Management Teams Dr. Krug is nationally recognized for his research on the effects of mergers and acquisitions (M&As) on target company top management teams. Organizations lose about eight percent of their executives each year through normal attrition. However, they can expect to lose about 24 percent of their executives in the first year following acquisition – a turnover rate three times higher than normal. In the second year, firms can expect to lose an additional 15 percent. That means that target companies lose an average of about 35 percent of their executives in the two years that follow an acquisition. For more than 20 years, researchers and practitioners have assumed that a high level of executive turnover shortly after an acquisition leads to lower post-merger performance. Indeed, merger success is often dependent on the acquirer’s ability to retain key target company executives. Target company executives often have industry and firm-specific knowledge that is difficult to replace. Their retention also supports strategy continuity and on-going projects, and it minimizes negative effects of the acquisition on employees, which may reduce productivity and lower firm performance. Krug's research, however, shows that the effects of executive turnover are far more complex. Executive turnover may be harmful or beneficial to post-merger performance depending on the goals of the acquisition. In some cases, replacing target company executives is a means of driving synergies and reducing redundant resources. Over the years, Krug has constructed the largest database of post-merger executive turnover data in the nation. He has followed the careers of more than 25,000 executives in close to 2000 acquisitions for 15 or more years surrounding the target’s acquisition Dr. Krug’s research has been published in a variety of leading journals in strategic management and international business. His recent book entitled Mergers & Acquisitions: Turmoil in Top Management Teams (2009, Business Expert Press) is the product of more than 15 years of research on the effects of M&As on acquired executive teams. It provides a framework for understanding how acquiring firms can construct effective top management teams in target companies after an acquisition. Books by Dr. Krug on this subject: Krug, J. A. (2009). Krug, J. A. (2009). Mergers and Acquisitions: Turmoil in Top Management Teams. Key research articles by Dr. Krug on this Subject: Krug, J. A. (2009). An analysis of long-term leadership continuity in target firms. Journal of Business Strategy Krug, J. A., & Shill, W. (2008). The big exit: Executive churn in the wake of M&As. Journal of Business Strategy, 29(4): 15–21. Krug, J. A., & Aguilera, R. (2005). Top management team turnover in mergers and acquisitions. In C. L. Cooper & S. Finkelstein (Eds.), Advances in mergers & acquisitions, 4,123–154. Krug, J. A. (2003). Why do they keep leaving? Harvard Business Review, 81, 14–15. Krug, J. A. (2003).Executive turnover in acquired firms: An analysis of resource-based theory and the upper echelons perspective. Journal of Management & Governance, 7, 117–143. Krug, J. A., & Hegarty, W. H. (2001). Predicting who stays and leaves after an acquisition: A study of top managers in multinational firms. Strategic Management Journal, 22, 185–196. Krug, J. A., & Nigh, D. (2001). Executive perceptions in foreign and domestic acquisitions: An analysis of foreign ownership and its effect on executive fate. Journal of World Business, 36, 85–105. Krug, J. A., & Nigh, D. (1998). Top management departures in cross-border acquisitions: Governance issues in an international context. Journal of International Management, 4,267–287. Krug, J. A., & Hegarty, W. H. (1997). Post acquisition turnover among U.S. top management teams: An analysis of the effects of foreign versus domestic acquisitions of U.S. targets. Strategic Management Journal, 18, 667–675. |
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"Mergers & acquisitions lead to high turnover among target company executives that can last ten or more years after an acquisition. Reestablishing leadership stability is an important component of effective merger integration." |
