In my opinion, retaining the target existing key management is definitely a good start if the target company is well managed by the management (there are cases where acquisition was performed on poorly managed companies for a penny price). The target’s management has shown its capability and possess the relevant experience in managing the target’s business. In the event that the target’s key management is unable to work together with the acquirer’s management under a merged entity due to cultural differences or any other reasons, it would be advisable to re-assess the situation and perform a firm-wide assessment on all management level staff to resolve the problem in order to move forward.
