[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.

[Kristi Sun]

From a post‑merger integration standpoint, we have found that acquisitions are most successful when a balanced approach is taken between centralized oversight and retaining strong local management teams. In prior deals, removing too many people at the local level has consistently slowed integration and limited progress. Local teams bring critical regional knowledge—particularly in sales, finance, HR, and legal and regulatory matters—that is extremely difficult to replace or manage effectively from a distant headquarters operating in different time zones and under different rules. While the parent company provides governance, structure, and best practices, preserving local expertise allows the business to continue operating effectively during integration. Successful integration relies on knowledge flowing both ways: parent‑company capabilities being pushed down to strengthen execution, and local insights being brought back up to inform decisions. This balance helps keep teams aligned, supports synergy realization, and ultimately improves the likelihood of long‑term acquisition success.

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