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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