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It is commonly believed that retaining target company executives is an important determinant of post-acquisition success. We review existing research, paying particular attention to the different micro-, group-, meso-, and macro-level factors that motivate acquisitions. We conclude that the link between turnover and post-acquisition performance is more complex than implied by existing studies. Retaining executives may lead to higher performance in some acquisitions, as existing studies suggest. However, there are good theoretical arguments for the opposite view; namely, replacing executives may be an equally important source of value creation in other acquisitions. We develop a framework that provides guidelines for understanding when and under what conditions retaining or replacing target executives may contribute to acquisition success. A research agenda that considers acquisition context and the short-, intermediate-, and long-term performance consequences of leadership instability in acquired firms is suggested as a means of moving this research domain forward. The decision to retain or replace target executives is largely a matter of context. Existing studies have not yet captured this complexity.
