The Search For Jewels

What are the main drivers of M&A?

The main motivation behind mergers and acquisitions (M&A) insurance transactions is to become stronger. This can be accomplished through a meeting of equals where strength comes from a combination of two operating entities or through a merger scenario where a stronger merger partner is looking to acquire key assets from its counterparty to round out a portfolio or expand reach.

Bigger becomes better in merger scenarios as larger players look to continually strengthen their influence. Stronger can also be achieved through acquisitions where equity is injected and restructuring is undertaken in order to create a stronger and more dynamic operating platform.