As the nation’s largest personal lines insurance company for multiple years, Confie’s success is built upon the accomplishments of a coast-to-coast network of talented merger and acquisition partners. Of course, every insurance acquisition carries its own unique set of risks and challenges that can present themselves at any point, from due diligence missteps through shaky integration efforts. These are just a few examples of the broader risks in mergers and acquisitions, which become even more complex when state-by-state differences are involved.
The level of risk can be compounded when the acquisition target is an insurance company with a particularly broad footprint. Here’s why risk management in multi-state acquisitions is such a hot topic.
Unique Challenges with Multi-State Acquisitions
Here are some of the issues to be resolved when an acquisition partner operates in more than one state.
Varying Regulatory Requirements Between States
The law is the law. Except that it’s not always that simple.
The United States is a patchwork quilt of insurance laws and regulations. That’s because many rules are set by state insurance agencies, and those rules can vary from state to state. You’d better know that when you make multi-state insurance acquisitions, or risk costly delays and compliance issues that could derail progress. There’s no such thing as a level playing field.
The impact of regulatory changes from place to place even affects the hiring and training of team members. Different states require insurance salespeople to meet varying licensure standards.
At Confie, we have wide-ranging experience interacting with multiple state agencies and respecting all regulations and requirements when making insurance acquisitions. We bring in experts who know the legal and regulatory landscape in every involved state, and we move forward by incorporating all the local laws and regulations affecting our ever-expanding footprint.
Cultural and Operational Differences Between Markets
“What we’ve got here is failure to communicate.”
That’s a well-known quote from the classic film “Cool Hand Luke.” But the words could also describe one of the inherent risks of acquiring an insurance company with offices in several states.
Every workplace has its own culture derived from management and the attitudes and work habits of the people employed there. It’s important to respect the differences in culture between locations and recognize the sensitivities that might be involved during the acquisition process.
Some of those outer-ring offices might have already felt ignored or underappreciated by the corporate office even before an acquisition was under consideration. Those branch locations aren’t primed to feel better about their position within the expanded company unless transparency and efforts toward inclusiveness are made by the acquiring party.
At Confie, we recognize the importance of connecting with every office, not only the primary location, when conducting acquisition due diligence and initiating integration efforts.
We start the process by establishing clear communication channels between all of these multi-state offices and by regularly updating local management, employees, and other stakeholders on the progress of the M&A. We make this a key mission of every acquisition because of how it minimizes uncertainty and fosters greater trust and collaboration across the entire organization.
Meshing Technologies Across the Expanding Network
How does the insurance company to be acquired communicate internally and externally? What programs and platforms do HR and Accounting use? Will these technologies work seamlessly with Confie? Will additional solutions need to be incorporated, and people trained to use them?
When it comes to today’s digital landscape, there are a lot of questions that must be asked and answered during the due diligence process, and as the companies work closer together at the integration stage.
Our IT teams are on top of it, seeking solutions and integrating technology post-acquisition for maximum ease and efficiency as we learn to co-exist and thrive.
Confie’s Proven Approach to Managing Acquisition Risk
Our first step is to recognize that there are risks and challenges to every transaction of this nature, even if state lines aren’t crossed. We take a team approach, your people and ours working together to dismantle obstacles as we find them.
Together, we’ll develop and execute detailed acquisition and integration plans that address all possible issues affecting HR, Accounting, Finance, and other key departments, and carefully review all regulatory matters across states.
Company morale is critical. That’s why we incorporate clear two-way communication channels, offer generous benefits and competitive salaries, and promote achievable career growth opportunities.
Our ultimate goal is the same as yours: a seamless transition that engages, motivates, and benefits all stakeholders across the newly expanded company.
What Business Owners Can Expect During the Process with Confie
You might have never gone through an acquisition and integration process before. To reduce the stress, you should know that you can expect respect, teamwork, clear communication, and transparency from your new partner.
Our experience in acquiring hundreds of insurance company partners has shown us the critical importance of engaging all stakeholders and making it a team effort.
You’ll be introduced to your Confie acquisition team and encouraged to ask questions, challenge decisions, and offer input at every stage of the process. That’s how we’ll welcome you to the widespread Confie corporate family.
Sell Smart, Stress Less: Learn How Confie Manages Risk in Every State
After hundreds of successful transactions all across the nation, the Confie acquisition team has mastered the art of working with regulators and insurance agencies in just about every state. That’s how we know we can seamlessly undertake the integration of your company with ours.
Check out our frequently asked questions regarding an acquisition. Then we invite you to reach out and open the lines of communication. Learn more about Confie risk mitigation and the many ways joining our team can put your company on the fast track and benefit all your stakeholders — wherever they’re located on the map. Call us at (714) 252-2500 or contact us online if you’d like to explore a possible partnership and its value to your entire team.
