GLOBAL HEALTHCARE STRATEGY

Commercial due diligence

Commercial due diligence
on a Nordic PMI company

CLIENT

Huge, Global Multi Line Insurer, with interests in PMI.

REQUIREMENT

The Group Health CEO keen on growing into the European PMI market had entered a contest to buy a Nordic based target. It needed a 3rd party view on the targets plans to expand into other European markets, namely France, Italy, Spain and Germany.

CHALLENGE

The time frame for this was three weeks, between Dec 25th and Jan 12th. MGG had good experience of the target and three of four markets. The target had very specific capabilities and the question was, if these skills were needed in each market and if an entry would succeed and to what degree and how fast.

SOLUTION

MGG assessed the relative attractiveness of each of the four markets against the capabilities of the target, to highlight the potential and secondly it analysed if there was a chance to gain share and make profit in a short to mid term time frame.

EXAMPLE OUTPUT

#18 slide

THE OUTCOME

The answer was that 2 of the 4 markets had good potential but entry success was very tough. The client finally decided not to bid as its value estimates were quite below the guideline given.