Insights on financial services M&A
Insights on financial services M&A
Insight

Insights on financial services M&A

October 2018

  • ASC 606 Revenue Recognition Considerations for Financial Services M&A
  • Financial services valuation trends

ASC 606 Revenue Recognition Considerations for Financial Services M&A

 

Data rich and regulation wary

The value of personal customer data represents an enormous asset to financial services organizations seeking to understand and access their customer base. With this value comes a heavy burden to ensure organizations have robust, effective data privacy and security programs to deter breaches, along with principled business ethics and practices around safeguarding customer data through proper use, access and sharing; a heavy burden that is evolving and strengthening following several recent impactful breaches and misuses of data. In an acquisition scenario, assessing the target organization’s data privacy and security risks is critical during due diligence, including understanding how their policies and procedures align with your organization.

As discussed in Data rich and regulation wary, several key diligence actions should be conducted to assess the target’s susceptibility to risk based on current, past, and anticipated future practices. Stakeholders should seek to understand the following:

  • How data security and privacy risks are assessed;
  • Whether internal controls are adequate;
  • Gaps in compliance programs; and
  • How the post-close operating model and business practices influence risk.

Following due diligence, acquirers should consider critical remediation activities and implementation costs. For complex issues, a more holistic evaluation of the risk/reward profile of the acquisition should be considered.  Organizations must ensure their entire value chain fosters a culture and practices that enhance data privacy and security to limit customer and reputational risk.

 

Additional KPMG insights
 

Striking a balance: How financial services CEOs can best leverage the intersection of tradition and innovation

Financial institutions are increasingly under pressure from FinTech firms and customers to innovate and deliver more efficient and digitally enabled services. This article outlines three critical activities that CEOs in financial services should focus on such as creating a future-focused strategy, shifting to a more agile corporate culture, and finding the right talent balance.

Accelerated Evolution: M&A, transformation, and innovation in the insurance industry

Based on a survey of 200 insurance executives globally, our report, Accelerated Evolution: M&A, transformation and innovation in the insurance industry, illustrates that the successful insurance organizations of the future will be the ones that are already thinking beyond traditional M&A to execute transformational deals to satisfy both the evolving needs of their customer base, and demands from shareholders and investors to enhance enterprise value.

Insurance brokerage M&A: Creating and realizing value through inorganic growth

Today’s insurance brokerage industry remains highly fragmented and ripe for continued consolidation. Potential acquirers have quite a few options to consider depending on their overall business model, target operating model, and growth strategy. In this report, we describe a number of considerations for acquirers to weigh as they contemplate growth through M&A – from viable strategies in today’s insurance brokerage M&A environment, to the risks and opportunities of various investments.

The Pulse of Fintech 2018

In this edition of The Pulse of FinTech, we highlight key FinTech deals, issues and challenges, in addition to key trends and insights related to FinTech in around the globe during the first half of 2018.

Frontiers in Finance: Workforce shaping

In this issue of Frontiers in Finance, we focus on workforce transformation by examining the evolving relationship between humans and machines, cultural change and key talent strategies. We also interviewed top human resources leaders from AIA, Aviva, Charles Schwab and Westpac for their practical insights in navigating today’s complex and uncertain landscape.



© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

Financial services valuation trends

 

 

Additional KPMG insights
 

Striking a balance: How financial services CEOs can best leverage the intersection of tradition and innovation

Financial institutions are increasingly under pressure from FinTech firms and customers to innovate and deliver more efficient and digitally enabled services. This article outlines three critical activities that CEOs in financial services should focus on such as creating a future-focused strategy, shifting to a more agile corporate culture, and finding the right talent balance.

Accelerated Evolution: M&A, transformation, and innovation in the insurance industry

Based on a survey of 200 insurance executives globally, our report, Accelerated Evolution: M&A, transformation and innovation in the insurance industry, illustrates that the successful insurance organizations of the future will be the ones that are already thinking beyond traditional M&A to execute transformational deals to satisfy both the evolving needs of their customer base, and demands from shareholders and investors to enhance enterprise value.

Insurance brokerage M&A: Creating and realizing value through inorganic growth

Today’s insurance brokerage industry remains highly fragmented and ripe for continued consolidation. Potential acquirers have quite a few options to consider depending on their overall business model, target operating model, and growth strategy. In this report, we describe a number of considerations for acquirers to weigh as they contemplate growth through M&A – from viable strategies in today’s insurance brokerage M&A environment, to the risks and opportunities of various investments.

The Pulse of Fintech 2018

In this edition of The Pulse of FinTech, we highlight key FinTech deals, issues and challenges, in addition to key trends and insights related to FinTech in around the globe during the first half of 2018.

Frontiers in Finance: Workforce shaping

In this issue of Frontiers in Finance, we focus on workforce transformation by examining the evolving relationship between humans and machines, cultural change and key talent strategies. We also interviewed top human resources leaders from AIA, Aviva, Charles Schwab and Westpac for their practical insights in navigating today’s complex and uncertain landscape.



© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 

The KPMG name and logo are registered trademarks or trademarks of KPMG International.
 

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.