Acquisition Advisory Case Study
Client: Nationally Recognized, Publicly Traded, Multibillion Dollar Insurance Company
Objective: Purchase 1-3 single state insurance companies authorized to write property business. In addition, these companies need to be licensed in the state prior to June 1984, so as to provide a premium tax advantage to the client, which would allow them to be more competitive in pricing their policies than the current competition within the state.
Our Process: Led by a senior advisor, Merger & Acquisition Services undertook the following initiatives:
- Identified the universe of companies that were licensed prior to June of 1984 to give the client an understanding of the total number of potential options
- Worked hand in hand with the client’s internal corporate development team to review companies identified in the first stage and narrow down potential targets that met their acquisition guidelines
- Merger & Acquisition Services contacted agreed upon “targets” on a no name basis to assess their interest in a potential acquisition
- Presented the client with approximately 6 companies who would be open a discussion with our client and assisted in executing non-disclosure and confidentiality agreements
- Initiated due diligence process by collecting relevant data on each company and working with the client to review the materials
- Worked with the client to develop a valuation model and prepare a Letter of Intent (LOI)
- Assisted in negotiating the terms of the transaction and subsequently consummating a transaction
Result: Client successfully acquired 2 companies licensed in the state prior to June 1984. The client continues to be a large writer of property business within the state.