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 Summary

As 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.

Member Only Content

To continue reading, purchase this article or become a member.

*Already have an account? Click here to login