WHO OWNS A CUSTOMER RELATIONSHIP FOLLOWING A MERGER OR ACQUISITION?

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Abstract

This paper discusses how changes in management affect customer relationships. Management turnover is described widely in literature on M&As. Such turnover may help new owners to attain control over an acquired party, for example, but managers who leave an M&A party may also lead to customer losses. This paper shows that managers and other company representatives are important if customers are to be kept following an M&A. The findings indicate that customer relationships may well be “owned” by managers rather than by companies and also show that what managers and other representatives leaving an M&A party actually do is to make customers’ dissolution decision more probable.

Keywords: Merger, Acquisition, Customer Relationship, Corporate Governance, Conflict of Interest

How to cite this paper: Öberg, C. (2008). Who owns a customer relationship following a merger or acquisition?. Corporate Ownership & Control, 6(2-1), 212-221. https://doi.org/10.22495/cocv6i2c1p5