The key to rapid M&A: make personnel decisions swiftly, and avoid internal power struggles.
Priority order for an insurance company’s development should be: → Introduce and innovate products → Build a more efficient organization → Expand distribution channels → Improve risk management → Pursue M&A
The real key to winning in M&A is respect. Price matters, but the real secret is not overpaying — the true value of an acquisition is realized in long-term stock performance.
The biggest problem in M&A is always a people problem.
For acquisitions in Asia, 100% ownership should be the priority. Joint ventures (such as in Malaysia or China) should be a last resort. Adapt to how business is done locally in each country. Core principles:
- Always tell the truth
- Stay focused on your core business
- Have ambition
- Leadership must be fully committed
On doing business in China: It’s difficult, because China lacks a complete commercial framework. In their rapid development, they’ve tried to grab too much at once, neglecting the establishment of complete systems, core frameworks, commercial law, standard business practices, and respect for intellectual property. The approach must be:
- Be very patient to first obtain a license
- Under Chinese law, find the right partner — choose a joint venture company that doesn’t understand insurance, allowing them to manage Manulife’s relationship with China’s government and officials
Stay true to your values. Keep an open mind, aspire to treat people fairly for life, respect all living things, stay vigilant, and stay curious.
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