Theoretical And Empirical Research, Mergers And Acquisitions Top Management Teams Of Competency Model

Value creation is the purpose of merge and acquisition (M&A). Value creation is the source of an efficient M&A. For a successful M&A. the critical factor is Top Management Team (TMT), who leads the execution in any M&A. As the Jack Welch's saying,'The successful execution of M&A relies on an efficient TMT, which contributes 95% to all successful factors." Then, what are the competency characters for an efficient TMT who could achieve synergy in M&A? Until now, there is NO structured model to the question in any research fields, no matter in the areas of M&A or TMT theory.The document will show a TMT competency model with tested hypotheses, which elaborates the characteristics of a competency TMT. The model focuses on the characters of TMT in an M&A situation, when confronting the challenges from the integrations on operation, human resource, organizational cultural and internal external communication. The model is based on three methodologies, integration of theoretical analysis, qualitative research and empirical test, while the hypotheses is tested by the statistical tools, such as correlation analysis, factor analysis, and multiple regression analysis. The major points of the model are as following:1. The model is organized in 2 tiers,15 dimensions and 30 indexes.2. The competency characters are separated into two groups, structural competency characters and behavioral competency characters. The former includes knowledge structure, seniority structure, experience structure and specialized field. The latter includes TMT comprehensive cognition abilities, TMT people skills, and TMT internal abilities. TMT comprehensive cognition abilities are composed of soft thinking, insight decision, strategic execution, and innovation ability; TMT people skills are composed by common vision, team cooperation, communication, and rapport establishment; while TMT internal abilities are composed by organizational commitment and exploration.3. The competency characters are effective indicators to M&A outcome, but the effectiveness between groups of character is obviously different. For example, TMT behavioral competency characters are more effectiveness than structural competency characters; while within the group of behavioral competency characters, the knowledge, seniority, experience and specialized fields have different effectiveness as indicators. The gaps also exist among the indicators of people skills, cognition ability and internal ability, which constitute behavioral competency characters. In conclusion, the TMT competency model will effectively differentiate efficient management team with non-efficient teams in M&A situations.The document not only focuses on the model of TMT competency character and the research on synergy effectiveness, but also contributes additional theories to M&A and TMT, and equips an effective tool for selecting TMT and making decision in M&A situations.