Why Tech Matters in M&A

Technology and AI innovation makes an impact when it comes to merger and acquisition decision, according to Brooke DeWyze, chief development officer for Trucordia, formerly PCF Insurance Services.

DeWyze, who spends her time at Trucordia evaluating independent agencies that are interested in becoming a Trucordia partner, told Insurance Journal that agency technology plays a significant role in sourcing.

“From start to finish, from sourcing deals all the way through the acquisition, we are looking at the agency to see what type of tech stack they have, how they’re embracing it, and how they’re utilizing it,” she said.

She believes AI will continue to drive greater efficiency into insights and strategic advantages, not only through the deal process, but also within the agency.

“Some of the ways that I’m currently using AI in the M&A space is just in terms of deal sourcing and target identification,” she said. AI driven market intelligence is key because it can sift through massive amounts of data and identify potential targets that meet specific criteria such as geography, focus, product line, client base, she added. “It can also do trend analysis.”

She also sees it playing a role in agency valuations and financial modeling. “I foresee it helping in that realm in terms of predictive analysis, where it can help us predict what an agency might look like in the future as we acquire it, as well as help with scenario planning and gaining efficiencies,” she said.

“When we’re looking at agencies, we really want to see how technologically advanced they are, how they’re embracing technology,” she said. “We definitely want to see how they’re looking at technology and AI specifically.”