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28 June 2007 / Nick Pointon , Mark Langley-sowter
Issue: 7279 / Categories: Features , Insurance / reinsurance
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Merger problems

Contact your broker early if you are considering a merger this year, say Nick Pointon and Mark Langley-Sowter

The post Clementi era has brought with it an increased number of mergers, with numerous high street  practices looking to purchase or merge with their local competitors. In the rush to merge and expand, however, many firms leave the insurance aspect of the deal too late, ignoring warnings that due diligence should include a full investigation of claims records to avoid rocketing professional indemnity premiums.

Insurance brokers need to be notified about any potential mergers before a deal is done, as mergers and acquisitions often create numerous problems for staff and management alike.

Most common is the clash of two or more cultures that inhibits a smooth transition from the outset and can cause some client dissatisfaction in the short term. Re-branding also has an internal implication, which is often missed in the rush to integrate and reduce costs after a takeover. Too often, firms merge with scant regard about the effect of relationships and

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MOVERS & SHAKERS

Flint Bishop—Charlotte Harris

Flint Bishop—Charlotte Harris

Sheffield expansion continues with appointment of commercial property partner

Browne Jacobson—Paul Duggan

Browne Jacobson—Paul Duggan

Browne Jacobson strengthens banking and finance practice with latest partner appointment Paul Duggan

Ward Hadaway—Chris Piggott

Ward Hadaway—Chris Piggott

Employment partner joins Ward Hadaway

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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