Technology Is a Catalyst for M&A Integration
Buyers and sellers can both benefit from good tech.
Recognized as one of the most active buyers in the industry despite a general slowdown in mergers and acquisitions (M&A), Trucordia (formerly PCF Insurance Services) has extensive experience with what works for integrating acquisitions—and what doesn’t.
“Digital platforms play a vital role in the day-to-day operation of our relationship-focused business,” says Trucordia CEO Felix Morgan. “As we continued to grow, the importance of unifying and integrating our offices so we can be the next great insurance brokerage became apparent. By investing in the right platforms and processes, our people are able to work collaboratively to create exceptional client experiences.”
For other brokerages growing through acquisitions or agencies looking to sell, Morgan shares three reasons why technology is crucial to M&A integration.
- Agencies can negotiate higher multiples when they have data. When individual agencies have a strong tech stack and can quickly and easily show their data and financials, they can demonstrate the financial value they would bring to a larger organization. Plus, data provides a level of transparency that helps both seller and buyer determine if they are properly aligned.
Quality data will likely be attractive to a potential buyer because, once it is integrated into the organization’s existing data, it enriches that information by possibly adding new data sets, deepening analytics capabilities, and strengthening data insights. Once armed with this robust information, the buyer should also be able to make better business decisions and forecast for more profitable growth. - Integrated brokerages can serve clients better and faster with organized tech. Trucordia has been integrating its people, processes, and platforms to create a stronger, more unified organization. In 2024 alone, the company will have executed more than 130 agency management platform conversions as part of its integration strategy. Systems integration leads to more robust analytics capabilities and helps the business make data-driven decisions that can benefit clients.
By doing so, Trucordia believes it will empower its leadership and team to provide better, faster, and more robust insurance solutions for clients. - Clear data helps direct clients toward the best insurers. With an integrated view of carrier and wholesaler offerings, agencies and brokerages can determine which insurance solutions serve their customers most effectively. This can also help them identify additional market opportunities for their clients.
An agency or brokerage might have brand-name tech platforms, but if it is not using them to their full potential or is not being a good steward of the data—keeping up-to-date records, market information, etc.—it might just have a pricey solution that could cause headaches later during integration. Data management is just as important as the tech solution itself.
Whether you are an active acquirer or interested in selling your agency, harnessing the power of technology and quality data will help you get the best deal possible.
