Why Mergers for Zimbabwean Insurance Companies Are Not Attractive
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Abstract
A research was carried out to find out why the Zimbabwe short term insurance industry has not considered mergers and acquisitions as a solution to capitalization challenges. The findings showed that most of the affected companies are not attractive as target companies, though they might be willing to be taken over. There is very little capital in the market and Foreign Direct Investment (FDI) is very limited due to the country risk profile. This reduces the number of potential interests in takeover bargains, though it is generally accepted by the market that mergers and acquisitions can go a long way in normalizing the insurance market and preserving employment.
A research was carried out to find out why the Zimbabwe short term insurance industry has not considered mergers and acquisitions as a solution to capitalization challenges. The findings showed that most of the affected companies are not attractive as target companies, though they might be willing to be taken over. There is very little capital in the market and Foreign Direct Investment (FDI) is very limited due to the country risk profile. This reduces the number of potential interests in takeover bargains, though it is generally accepted by the market that mergers and acquisitions can go a long way in normalizing the insurance market and preserving employment.