[Liangyue Pan]

After a successful acquisition of an international business, should the parent company continue using the local management team or replace it with its own people who are foreigners and unfamiliar with the local business?

[Miguel Cortijo Antona]

I believe there is no one‑size‑fits‑all answer. Retaining local management often preserves market knowledge, customer relationships, and cultural credibility, which is critical immediately after closing. However, selective integration of parent‑company leaders can help align strategy, governance, and performance standards. The most effective approach is usually a hybrid: keep strong local leaders while gradually embedding group leadership, incentives, and decision frameworks to balance continuity with strategic control.

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