Marsh-Heath Lambert Deal Nixed
International Editor
London
A proposed 350 million ($563.5 million) bid by Marsh & McLennan for London-based Heath Lambert Fenchurch has been shelved by mutual agreement, according to market sources.
Marsh got so far as to complete a due diligence, but both parties couldnt agree on an asking price, London market sources say.
Heath Lambert officials werent available for comment and a representative from Marsh said the company didnt comment on market rumor and speculation.
Sources at Marsh said they were relieved that the deal fell through because they didnt believe the companies would fit together well culturally.
A good cultural fit is important, said these market sources, because the most important part of a broker acquisition is the people. Mass defections of broker teams due to unhappiness after a merger defeat the purpose of doing a deal, these sources say.
What makes a good cultural fit?
One broker said that a good cultural fit would mean a similar approach to clients, markets and business processes.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 11, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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