Project Experience

Mergers and Acquisitions: Expanding Product Offerings through Acquisitions

Client Situation
Our client, a leading diversified financial services firm, was looking to add to its existing portfolio of insurance products by acquiring one or more insurance underwriters.

Fuld Approach
Fuld & Company was engaged to provide an objective assessment of the market potential for fifteen specialized insurance products, as well as to identify the best-qualified candidates for acquisition. In the product evaluation phase we ranked the products under consideration based on a variety of factors including competitive outlook, regulatory environment, ease of underwriting, profitability, and suitable demographics. We also provided the client with information on the market share held by specific underwriters of these specialty products, as well as information on each underwriter's ownership status, net asset size, product offerings, distribution channels used, and markets served. In the second phase of the project we interviewed sources within the target companies to provide insights into their client base, quality of management, strategic alliances, and current and intended efforts to expand into direct acquisition channels such as the Internet.

Benefits and Implications
Our final report advised our client on which products represented the best fit with their existing client base and corporate image. Our recommendations also convinced the client to pursue strategic alliances rather than acquisitions.
For more information on mergers and acquisition in the financial services industry, please contactlscanlon@fuld.com.