It outlines steps for businesses to make their integration as successful as possible
Novidea has today launched a new whitepaper to help insurance executives maximise success following a merger or acquisition.
The firm’s guide highlights the main concerns and challenges that businesses face in M&A success and outlines recommendations to help brokers and agents.
This approach aims to ensure that the business meets its objectives and can make the integration process a success.
Technology
The whitepaper report “Growing Your Business Through M&A” explores how technology can help brokers address key challenges and has produced a list of actions that need to be carefully managed during integration.
It said that “technology is crucial to long-term success of the acquisition.”
It follows another year of M&A activity in the insurance space, in the UK alone during 2017 the value of deals totalled £22bn according to Deloitte.
Ben Potts, UK managing director, said: “Many brokers and insurers have M&A activity sitting high on their list of objectives, yet post-deal completion, they often realise that they have much further to go on the road to success.
“Following an M&A deal, we frequently hear about how firms struggle to get a handle on their newly combined business, to integrate and capitalise on revenue potential, and to ensure the business maintains a healthy growth trajectory.”
Main challenges
For brokers, post-merger or acquisition is often where the hard work begins as they get to grips with their newly integrated business.
The report aims to highlight the steps for businesses to make their integration as successful and profitable as possible.
- Technology: How to ensure the businesses can merge seamlessly in order to improve efficiency, tackle legacy systems issues, benefit from standardised processes and eliminate data silos.
- Leadership: Tips on how the board can make sure they stay on the front foot when it comes to managing the M&A process, setting objectives, achieving synergies and keeping the customer at the centre of the company’s strategy.
- Cross and up-sell opportunities: How to deliver increased profit from the newly combined business – for example, by taking advantage of cross and up-sell opportunities that naturally arise as part of M&A.
The report highlights some of the “biggest decisions” that need to be made alongside M&A activity such as who to hire from both businesses, which parts of the business to focus resources on, the company’s objectives for the next year and which business lines to focus on – all of which can have a significant impact on the business.
Moreover, studies from KPMG show that 83% of all mergers and acquisitions do not actually increase profits.
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