Mergers & Acquisitions
Actuarial Partners is familiar with the challenges associated with takaful when considering a merger and acquisition, particularly the potential need to merge differing models and changes in model design, when new parties become involved. This work is performed on behalf of the buyer or the seller in a merger or acquisition and could also be performed for the purposes of an IPO, demutualization, or as part of a compensation scheme to company’s executives (embedded value calculation).
Actuarial Partners can provide the required strategic advice and calculations for all stages of the project including:
- Financial investigation and actuarial valuation
- Potential sellers/purchasers identification and evaluation
- Brokering negotiations between parties
- Due diligence on financial as well as strategic and operational aspects
- Identifying synergies
- Company restructuring prior to and after the sale
- Independent opinion to regulators
- Identifying the factors affecting deal price, with a view to maximize the value for the seller or assess potential risks for the buyer
A conventional company operating in a changing market may find converting its operation from a conventional setup to a takaful setup as an attractive option. We can advise on the optimal route to his conversion, taking into account that need to honour existing conventional contracts and advise on the best takaful model to adopt.
This option enables the shareholders to retain the company’s existing critical operating size and optimizes the capital when switching from a conventional to a takaful environment.