A major insurer planned to expand internationally by acquiring a foreign property and casualty insurer while simultaneously further developing its digital business model. This client case study illustrates how KPMG successfully executed a complex, cross-border transaction and integration project under significant time and regulatory pressure—from valuation and acquisition through to post-merger integration.
MAKE TRANSFORMATION THROUGH TRANSACTION
International complexity
Target companies in 15 countries with different regulatory frameworks
High speed
A decision will be ready within 8 weeks
Measurable added value
A saving of 20 million compared with the original purchase price
Client
Major insurance company
Sector
Insurance
Project goal
To assess risks and synergies, determine the optimal purchase price and successfully integrate an international target company to support digital transformation.
Technology
Digital analytics tools, bespoke communication tools, data-driven transaction analysis
Video: Backcha Bahadin explains how KPMG successfully manages cross-border deals under time pressure right through to integration.
The path to customer transformation
- The task
- Our approach
- The added value
Strategically safeguarding international transactions
The client was on the verge of acquiring a foreign general and accident insurer.
Key issues needed to be clarified regarding risks, potential synergies, the appropriate purchase price and the swift integration into the wider group. The task was particularly complex as the target company operated in 15 countries, various regulatory authorities were involved, and there were only twelve months available for the integration.
Coordinated globally. Rooted locally.
KPMG assembled an international transaction team, analysed over 5,000 documents and worked closely with around 80 project stakeholders on the client side. Regulatory expertise was pooled across 15 countries. The project was supported by a bespoke communication tool that ensured transparency, sped up coordination and made interim results readily available.
A successful transaction with a lasting impact
The client was awarded the contract for the acquisition and, thanks to KPMG’s transaction expertise, was able to save around €20 million compared with the originally estimated purchase price. The integration of the target company was successfully completed within eleven months. The collaboration is set to continue – the next transaction is already in the pipeline.
How we make a difference
With our international transaction expertise, regulatory know-how and proven track record in execution, we support transformation initiatives where they are most effective – in strategic decision-making.
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International transactions require a clear basis for decision-making
International transactions open up new growth opportunities for companies. At the same time, complexity, the need for coordination and regulatory requirements increase as soon as target companies are active in multiple markets. Particularly in the financial services sector, economic, tax, legal and regulatory issues must be addressed together at an early stage.
This client case study illustrates how KPMG supported a major insurer during a cross-border acquisition. The focus was on a robust valuation, a viable purchase price and an integration that had to be implemented under considerable time pressure. In the case of business models relating to payment transactions, payments and payment systems, transaction volumes, technical interfaces and regulatory requirements must also be assessed with particular care.
From transaction analysis to integration
In international transactions, it is not solely the attractiveness of the target company that matters. What is crucial is whether risks, synergies and the integration effort are assessed realistically. For companies to successfully manage international transactions, this therefore means that information must be made available quickly, categorised according to subject matter and made usable for management decisions.
We support you in preparing transactions in a structured manner, testing key deal hypotheses and incorporating international requirements into the decision-making process. This includes analysing the business model, financial data, regulatory frameworks, tax implications and operational integration requirements. Where payment transactions, digital payments or critical payment systems form part of the business model, we also assess the stability of processes, dependencies on service providers and potential impacts on integration.
Coordinated globally, capable of acting locally
In cross-border projects, risks often arise at the interfaces: between countries, functions, departments and external stakeholders. An internationally coordinated approach helps to identify local particularities at an early stage and incorporate them into the overall assessment.
To this end, KPMG brings together experts from relevant markets and specialist areas. This enables due diligence findings, regulatory assessments and integration issues to be consolidated within a coordinated process. Digital analysis and communication tools create additional transparency, speed up coordination and facilitate access to information relevant to decision-making. This applies in particular to international payment systems, where payment transactions and payments must function reliably across multiple countries, currencies and technical platforms.
Greater certainty for the next step
The added value lies in the combination of transaction expertise, industry knowledge and strong implementation capabilities. Management and the CFO are provided with a sound basis for better assessing the purchase price, risks and integration planning. This combination is particularly crucial in financial services transactions, as strategic objectives, regulatory expectations, payment transactions, payment systems and operational feasibility are closely interlinked.
Are you planning an international transaction or looking to structure an ongoing acquisition in a robust manner? We would be happy to support you with analysis, valuation, implementation and integration. This also includes the assessment of payments, payment processes and payment systems, insofar as these are relevant to the target company or the future integration.
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Frequently asked questions
A robust data foundation, clear lines of responsibility and an early assessment of regulatory, tax and operational risks are essential. Where payment transactions, payments or payment systems are involved, technical interdependencies and country-specific requirements should also be assessed at an early stage.
KPMG supports companies with due diligence, deal structuring, purchase price valuation, risk analysis and post-merger integration. In financial services transactions, payment processing, digital payments and international payment systems may also be included in the analysis.
Integration often involves multiple countries, IT systems, processes, regulatory requirements and corporate cultures. When payment transactions and payment systems are integrated, the demands on process security, data quality and operational stability increase further.