Case Studies

Acquisition screen

Measure Twice, Cut Once
In a saturated or stagnant market, one of the best ways to increase revenue is through a merger. Although mergers instantly create a more dominant market position, getting through and negotiation and agreeing on the terms of a merger can be challenging...
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Don't Bite the Hand that Feeds You
Entering New Markets

Post merger integration

Desire to vertically integrate can be quite tempting when you see that other participants of the value chain are making good money. But chasing profits can be risky business when you irritate those that send you business. Knowing when and if it is worth it can ensure that you keep the food train coming.

Our client was a large insurance broker that worked with facilities management consultants across the world. They assessed risk based partially on input from the facilities management firms responsible for building maintenance. Our client had the opportunity to go into this business through an acquisition or by starting their own consulting company but needed help to determine if this was a good idea.

Genoa conducted interviews of existing facilities management companies world wide as well as internal and external interviews of our client and its competitors. Competitors were frequently partners in insurance deals as well as lead sources for our client which was a tricky balance.

We were able to identify the key success factors of our client’s business as well as the facilities management business. One of the key success factors for facilities management and risk assessment was the ability to remain neutral both practically and in appearance. Being both a broker and a representative of the buildings that an insurance company was trying to cover would make it impossible to retain the perception of objectivity and neutrality.

Getting in the business could have been an easy transition for our client, but they would have lost referrals from other facilities management companies and would have found it difficult to grow their own business had they chosen to enter the segment. In this case, it was better off not to chase the profits and ensure that their core business would remain healthy.