Synergy & Due Diligence.
Loss-ratio economics, carrier architecture, synergy modeling, customer-risk mitigation. The synergy-analysis framework that translates DD findings into a defensible integrated pro-forma.
31pieces
In this category
4sub-topics
Sub-hubs
8min avg
Reading time
Synergy Analysis & Due Diligence for Buyers: The Pro-Forma Build
How disciplined buyers translate DD findings into pro-forma P&L — tier jumping, loss-ratio trap, transition dip, revenue and cost synergies, the shock-loss math.
Carrier Architecture Concentration
B13The 30-55 rule — the carrier-concentration safety screen8 minB13Carrier appointment transfer — securing the consent8 minB13Carrier change-of-control — the clause that resets terms8 minB13Carrier depth vs. breadth — the architecture buyers price8 minB13Pricing power — price taker, transitional, or price maker?8 minB13Seller archetypes — which buyer pays a premium, and why8 min
Customer Risk Mitigation
Loss Ratio Contingency Economics
B13Contingency clawback — the income that isn't fully earned8 minB13Contingency benchmarks — is the income premium or lucky?8 minB13The loss-ratio trap — when a clean book gets contaminated8 minB13Paid vs. incurred losses — the year-end loss-ratio jump8 minB13Tier-jumping math — the contingency synergy of scale8 minB13Volume gates — the step-function contingency synergy8 minB13Written vs. earned premium — the contingency mismatch8 min
Synergy Modeling Pro Forma
B1310 vs. 15 commission math — the arbitrage dollar model8 minB13L&H cross-sell — the hidden-value penetration lever8 minB13Market-access arbitrage — wholesale to direct, +5 points8 minB13The peak leverage window — capturing 15% before $3M8 minB13Pre-LOI synergy modeling — the thesis before the VDR8 minB13Revenue vs. cost synergies — which one actually pays8 minB13The Sitkins principle — who funds the agency's profit8 minB13The synergy pro-forma — modeling the combined entity8 minB13The transition dip — when personal-lines rates erode8 min