b"SEQUEL ANDR FRAZO'The highest efficiency is achieved by optimizing the procurement of risk capacity and the ability to reach customers in multiple markets'International players developed local platformsCAREFULLY STRINGING PEARLSon the Iberian Peninsula, in the DACH region, theWe also help our clients to build a solid operating Benelux, in Italy and in the Nordics, with localplatform in which the acquired businesses are management teams, with strong local knowledgeoptimally integrated. Combining the businesses and expertise. In addition, large internationaland their different cultures, infrastructure and players set up business divisions for Europe, as forcustomer base is a complex job. The platform instance, the Ardonagh Group created Ardonaghmust be more than the sum of its parts. There Europe, or Howden and the PIB Group haveare synergies and efficiencies to be unlocked in appointed dedicated European leadership teams.several areas, but across markets we see that The M&A teams within these companies also focusthere are limited benefits to be gained from an on specific regions, giving them a much betteroperational perspective. The greatest efficiencies understanding on how a market works and theare achieved by optimising the insurance panel targeted businesses. If you want to successfullyand the ability to cover clients across multiples roll out your international strategy, you need togeographies. Furthermore, other forms of have knowledge of a specific market, find a high- efficiencies could be to nearshore a part of the quality local management team and you need toback office. Regarding IT systems, I havent seen have the ability to build a best-in-class operatingyet a sole company that has managed to integrate platform and governance model. Take Germany,all processes into a single IT system across for instance, where many players would bemultiple jurisdictions. The largest international eager to enter the market. Several private equityplayers on the European insurance market firms are doing their best to acquire a Germanhave been buying an average of twenty to thirty broker platform, but lack German capabilities.companies a year and have their hands full with Without local capabilities and relationships andthe integration process, which is by no means the understanding of the culture, these marketscompleted.The focus at the moment is on the might be challenging for international investors. Tooperational side, with cost optimisation to better have local feet on the ground are essential, aftermanage the cash flows and increasing the organic all continental European SMEs are used to dogrowth. Insurance brokers have implemented business in their local language. very limited advanced technology to date, and management will only consider investments in technology to optimise their value chain when these businesses start to mature and reduce the pace of M&A, Frazo explains.40 BHB DULLEMOND"