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The New Deal

The New Deal

Driving insurance transformation with strategy-aligned M&A

Driving insurance transformation with strategy-aligned M&A

The road to strategy-aligned deal making in 2017

The modern M&A landscape is filled with both opportunities and pitfalls for global insurance companies. To navigate this landscape succesfully, acquirers cannot divorce their M&A activities (both target identification and target evaluation) from their broader strategy. They need to pay close attention to their strategic growth objectives, as it relates to transforming their business and operating model, and recognize that not all potential acquisition targets are capable of helping fulfill them.

A strategy-aligned M&A focus will bring greater clarity on which markets, geographies, products and channels insurers wish to 'play in' or 'exit out of'; and the relevant operating processses, technology infrastructure, talent and culture they will need in order to win and transform their operating model.

Startups with powerful software tools and innovative technologies are increasingly seen as attractive targets, as evidenced by recent high multiples and valuations of such technology enabled platform based business models. In this market, insurers will need to be equipped with holistic data and analytics-enable deal evaluation capabilities. Particularly in the areas of duel diligence, integration and separation activities to fully understand how they can extract maximum value, and how the target's operating capabilities complement or supplement their own.

 

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