Avoiding winners and losers
The risk that partners will start to resort to the contract is especially pronounced in transformational outsourcing deals, where decisions are being taken that affect the long-term operation of the business – meaning those decisions are especially exposed to changing market conditions.
A good example of the targeting, crystallization and realization of benefits amid change in the wider market occurred in the deal under which the Dutch insurer Aegon bought Axa’s UK life and pensions business, branded Guardian Royal Exchange (GRE), in 1999 (see the case study on page 197). Faced with integrating this new purchase as quickly and smoothly as possible in order to run it down and absorb its products and client base, Aegon ...
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