Post-merger Restructuring of the Labor Force

Post-merger Restructuring of the Labor Force

Britta Gehrke, Ernst Maug, Stefan Obernberger, Christoph Schneider

Series number :

Serial Number: 
753/2021

Date posted :

April 21 2021

Last revised :

November 29 2023
SSRN Share

Keywords

  • M&A • 
  • restructuring • 
  • Employment • 
  • Internal Labor Markets.

We study the restructuring of the labor force after M&As by taking a comprehensive view that analyzes targets, acquirers, and merged firms. We show that acquirers’ establishments grow significantly as many jobs move from the target to the acquirer.

Employee turnover is large because many employees leave the merged firm voluntarily, and vacant positions at the acquirer are filled with external hires. Restructuring involves significant changes to the management and the organization of the firm. These findings highlight that redrawing the boundaries of the firm has also first-order consequences for the organization and composition of the labor force of the acquirer.

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Authors

Real name:
Britta Gehrke
Real name:
Stefan Obernberger
Prof.
Real name:
Christoph Schneider
Tilburg University