Mergers & Acquisitions
Strength in numbers
Our consultants at Break Free Consulting are well versed in market mapping, advising and the introduction of merger and acquisition opportunities for brokers, MGA’s and insurers across the globe. Our key successes sit with exceptional due diligence, alignment, valuation consultancy and post-acquisition integration.
Due Diligence
Due diligence for an insurance business can feel like an overwhelming exercise. It involves a comprehensive investigation of various aspects of the target business, or the business you are looking to sell.
Our consultants are on hand throughout all elements of the due diligence process. This includes financial analysis e.g., revenue, expenses, profitability, legal review e.g., contracts, licenses, regulatory compliance, operational assessment e.g., claims handling processes, technology systems, and market analysis e.g., competitive landscape, customer base.
Additionally, due diligence may involve evaluating the brokerage’s risk management practices, reputation, and potential liabilities.
Our market reputation is extensive in the insurance landscape and our core focus areas are MGA’s, brokerages and insurers.
Valuation
Valuation in the context of acquiring an insurance business involves determining the fair market value of the target business.
This process typically includes analysing the brokerage’s financial performance (e.g., revenue growth, profitability), market position, competitive advantages, and future prospects.
Various valuation methodologies may be employed, such as discounted cash flow analysis, comparable company analysis, and precedent transaction analysis. The goal is to establish a realistic and defensible valuation that reflects the potential value of the business to the acquirer.
Post Acquisition Integration
Post-acquisition integration involves the process of combining two or more businesses into a cohesive entity.
This typically includes aligning organisational structures, integrating systems and processes, harmonising cultures, and managing change.
- Organizational Structure: Determining the optimal structure for the combined entity, including the roles, responsibilities, and reporting relationships of key executives.
- Systems and Processes: Integrating IT systems, financial processes, and operational procedures to ensure efficiency and consistency across the organisation.
- Cultural Integration: Developing strategies to foster a unified corporate culture that aligns with the combined entity’s vision and values.
- Change Management: Implementing effective change management initiatives to minimise disruption and ensure a smooth transition for employees.
- Synergy Identification and Realisation: Identifying potential synergies between the acquired business and the acquirer, and developing plans to realize these benefits.
