Deal execution – buy side
Insurance data platform
Create a common data platform that is leveraged by the client throughout the deal to identify valuable insights, address our clients concerns, and determine the appropriate equity value of the target.
Our client, a South African insurer, required buy-side due diligence and valuations services on a proposed acquisition. Our team, which consisted of Transaction Services, Corporate Finance and Valuations, worked with our client to understand the drivers of the target and determined a fair value for the proposed acquisition using deals and data analytics platforms.
The challenge
The financial data was monitored in silos by the target. Our client wanted to gain an understanding of the underlying performance of the target, specifically considering its own performance within the industry. The client wanted to obtain clarity over trends in key KPIs such as premiums growth, reinsurance ratios, and loss ratios, across the different products, lines of business, channel and regions.
The reinsurance and loss ratios were key to our client in terms of their performance and synergies that could be achieved, and to assess an appropriate equity value for the business.
The outcome
Through our data analytic capabilities, we were able to consolidate the data received from the target and create a highly dynamic and interactive visualisation tool. This allowed the client to get a comprehensive understanding of the business’s performance and explore trends on a detailed level. This assisted our client to appropriately assess the forecast based on historical trends and determined a fair value for the target.
