The Se­cret To A Merger Made In Heaven

Insurance - - INSURANCE INDUSTRY CONSOLIDATION -

The con­clu­sion of an ac­qui­si­tion or merger trans­ac­tion is really just the be­gin­ning of the jour­ney; a post ac­qui­si­tion jour­ney that un­for­tu­nately many com­pa­nies do not un­der­take very well. There are shock­ing statis­tics about the num­ber of failed merg­ers. The most pes­simistic view comes from Oliver Wy­man who con­tended that, “Ev­ery sec­ond ac­qui­si­tion fails.” So, what makes the dif­fer­ence be­tween those com­pa­nies that will fail to reap the ben­e­fits they ex­pected from the merger and those that will suc­ceed in do­ing so? This is a vi­tal ques­tion for the Malaysian in­surance in­dus­try at this time be­cause so many in­sur­ers are step­ping for­ward into a post merger phase. Speed is one as­pect that stands out. Post merger in­te­gra­tion is per­haps one of the most com­plex tasks that a man­age­ment team can un­der­take. Con­sider some of the is­sues that must be dealt with. There needs to be a strat­egy re­think and re­align­ment; prod­uct, ser­vice and distri­bu­tion chan­nels must be ra­tio­nalised; ac­count­ing and ad­min­is­tra­tive func­tions have to be con­sol­i­dated; a new

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