The level of merger and acquisition activity is projected to rise in 2014, and while most M&A transactions are driven by growth opportunities for property/casualty insurers, nothing can derail integration like poor cultural synergy.
Executive SummaryAs M&A activity continues to rise in the P/C insurance industry, it is critical for companies to carefully consider the role that cultural integration plays on the success or failure of a deal. In this article, Aon Risk Solutions' Stephanie Gould Rabin provides 10 best practices for cultural integration success, noting that senior leadership must develop a process, an action plan and measurable goals early in the M&A process.
For decades, most management teams have been acutely aware that culture and people issues are the most significant challenges during M&A transactions. According to Aon Hewitt’s Culture Integration in M&A survey, 87 percent of organizations report that cultural integration was important or critical to transaction success. Unfortunately, cultural integration was also cited as one of the top three reasons for transaction failure.
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