Strategic & Commercial Due Diligence | SAX Project

Client Needs & Objectives

Our client, a French small cap private equity fund, wanted to assess the potential of a majority LBO investment in an insurance brokerage structure developing a wholesale broker activity

The objectives were as follows:

  • An analysis the quality of the client book “brokerage” and relations with risk bearers
  • A review of key business processes
  • A detailed analysis of recent and future growth of wholesale activity (product, price, distribution)
  • Development of an opinion on BP’s credibility in a context of significant regulatory change

Our Approach

  • Detailed review of the value chain, market drivers, trends and key figures
  • Detailed analysis of the client portfolio
  • Review of HR organization and processes (including management and IT) with identification of progress actions
  • BP review with more realistic construction assumptions
  • Detailed explanation of the regulatory context and its impacts

Client Benefits & Main Results

Clear understanding of the value chain and ongoing regulatory changes, as well as their impacts

Identification of risk areas (human, operational and commercial)

Business plan reviewed in a more realistic logic, with assistance to the valuation