Mergers and Acquisitions
The Plot 60 Way
With M&A representing an integral part of the growth strategies for many leading Brokers and MGA’s the need to capture the maximum value from such investments and attain the highest possible return requires a rigorous, robust and proven approach.
Once the deal is done, the complete and seamless and integration into your existing business is key to realising the full potential of your M&A activities.
Frequently requiring a unique blend of system implementation, data migration and systems integration activities, all wrapped within a structured project or programme framework we are expertly placed to assist your business achieve its acquisition objectives and our track record of assisting many leading Brokers successfully fully merge acquired businesses can help you unlock your M&A potential and deliver a much smoother, lower risk and lower cost business outcome.
Due diligence
Prior to the execution of a transaction we can assist you with your due diligence activities, helping you plan your M&D due diligence activities and participating with your own teams to determine the methods, approaches and protocols. Following on from the due diligence studies we can analyse, compile and provide a report of our findings. Typical DD activities might include:
- What trademarks and service marks does the company have
- What copyrighted products and materials are used, controlled, or owned by the company
- Intellectual property aspects, for example protection, indemnities and encumbrances
- Technology and software licencing review
- What software is critical to the company’s operations, and does the company have appropriate licences for that use of software
- The use of open source software and associated support provisions
- Any escrow arrangements
Business integration planning
One the acquisition transaction is complete the really hard work starts with careful and detailed planning required to integrate all activities into your operations. This aspect is critical in order to ensure the benefits and opportunities are realised and maximised. Frequently the business-as-usual teams are trusted to handle all the details of merging the organisations, despite it perhaps being a brand new experience for many of those involved.
With over 70% of integrations failing to deliver the expected results, clear post-merger planning is essential, and in particular the first 100 days of a merger have a disproportionately high impact on the overall success of an integration.
This is where Plot 60’s experience can really help you accelerate the realisation of the benefits of being a bigger business. We’ve simply lost count of the number of successful M&A projects we’ve worked on.
Product Strategy
One of the first integration considerations is dealing with the product offerings of the acquired company. Some acquisitions will require a transfer of business onto an existing product offering, others will largely leave the product mix alone, while some will want to run-off products due to customer overlap, low quality, low sales volume, or simply because the product doesn’t fit with the vision for the combined companies.
Integrate, integrate, integrate
Post-merger integration (PMI) is a fundamental stage post-acquisition to realising the value of an M&A deal.
It is a highly complex process, usually requiring swift action in unison with the running of core business activities. There is no one-size-fits-all approach to a successful PMI process – however, careful planning, focusing on the strategic objectives of the deal, and the identification and capturing of synergies will help maximise deal value.
One of the key reasons to make acquisitions is to realise efficiencies in day-to-day operations of a larger entity and it’s crucial in our experience that the two business are genuinely and fully integrated in order to maximise the potential. Integration goes far beyond merely changing the logo and website. Aligning the core business operation onto a single technology platform as quickly as possible, together with adopting common business processes, is critical to successfully bringing two businesses together.
The 100 Day Plan
The plan for the first 100 days post-merger consists of five core components, each entailing an analysis and implementation phase. The core components comprise:
- Organisational realignment
- Systems integration
- Process integration
- Synergy tracking
- Product and customer realignment tracking
The 100 Days Plan details for each core component a specific set of activities and deliverables to be achieved by a specific deadline. The plan’s core components are applied in a holistic manner to all functional areas of the new business.
Business integration
With the foundations for a successful merger laid in the first 100 days the period of transition and change to effect full business integration then typically takes 12-18 months, in part driven by the characteristics of insurance business in the UK.
A number of integration streams are generally initiated along the same lines as the organisational structure and aligned to the overall strategy. Streams may include:
- Customer Service
- Sales
- IT
- Finance
- HR
- Marketing and Communications
- Product
- Legal
- Compliance
Systems and process integration
Managing and executing the systems and process integration stream is a core strength of Plot 60 and where we can bring our skills and experience to bear.
- New system set-up, for example the configuration of new “Offices” in the Acturis platform
- Deciding what data should be converted and migrated to the Acturis platform
- Agreeing the approach to access to historical data that’s not being converted
- Decommissioning old systems
- Organising training for new users
- Testing to ensure everything is set up and working correctly
- Ensuring additional support is in place to support the transitional period
- Supporting to switch over
- Transitioning to the business-as-usual support functions
