UPDATE: Robust analytical methodologies can provide executives with insight regarding industry trends. This blog, previously produced by Diane Borska, Global Principal at Fuld + Company, on mergers and acquisitions is a demonstration of the power of strong industry understanding and well-executed analysis
Nearly 18 months after the Aetna – Humana deal was first announced, a federal judge has ruled the transaction would violate antitrust laws. As a result, it is all but certain that the deal will not go forward and analysts believe the closure of the other significant industry transaction involving Anthem and Cigna, is also in jeopardy. Observing the parallels of merger activity in another industry with relevant characteristics to health insurers, allowed us to recognize early on the risks these transactions would face and conclude that the pace of industry consolidation may be slow and face considerable challenges.