Global

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  • Type: White paper
  • Date: 9/15/2011

Deal drivers – the changing characteristics of FS M&A 

Deal drivers
What’s driving deals in this market?

According to our research, M&A deals in the FS sector are no longer focusing on cost cutting. Instead, the emphasis now is on finding opportunities for revenue growth – often through expanding distribution, developing new product lines or by entering new markets. In short, growing through acquisition is the new normal.


Secondly, regulatory reform in some regions – such as the introduction of Solvency II in Europe or the UK plan to force banks to separate their investment and retail arms – will drive major realignments within the global FS sector.


But when the next wave breaks depends on whether enough cost-cutting has restored organizations to a level of readiness to look for growth opportunities, whether they have adequately addressed the external challenges of new regulation and how they must manage an increasingly wary client base that demands more transparency.


“The increased sophistication in risk analysis required will force insurers to reassess their capital deployment."

– Francesca Short, Partner, KPMG UK

 

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To learn more, download the full report, contact your local KPMG member firm or email banking@kpmg.com to talk with one of our FS M&A experts.