Milliman consultants guide clients through the complexities of buying or selling, whether a proposed transaction involves a single line of business or an entire company. We have unique experience working on many facets of mergers and acquisitions related to medical expense, disability, long-term care and other forms of health insurance.
Using Milliman’s extensive network of contacts, our consultants have helped connect sellers and buyers and give valuable strategic advice in the initial stages of a merger or acquisition. We also assist either party in estimating a likely range of prices for a proposed transaction and perform in-depth technical actuarial modeling as part of the due diligence process.
Due diligence for bidding
Milliman provides highly detailed due-diligence reviews to refine the bidding process. We use mathematical and technical actuarial skills to allow buyers to validate the assumptions used to price a prospective acquisition and explore issues such as data integrity, valuation procedures, administrative processes, reinsurance agreements, and contract language. Our clients know we bring decades of experience to examining businesses in detail and they rely on our findings and recommendations.
Client example: the selling process, made strategic
Recently, Milliman consultants assisted a client in selling several lines of group insurance business to enable the company to redeploy capital to support other product lines. We performed historical experience studies to measure the past profitability of the group insurance portfolio and then estimated the expected future value of the business under a range of assumptions.
Milliman’s calculated actuarial appraisal value was included in an offering memorandum describing the business. We distributed the memo and helped our client evaluate the bids and select the final bidders. Our team supported the due diligence reviews conducted by each finalist and helped negotiate the final purchase terms with the winning bidder.
The sale of the business closed successfully and our client realized both short and long-term financial gains from the transaction. As well, the seller was able to refocus its management priorities on product lines of greater strategic interest to the company.