Aon plc

AON position long Wilmot Kidd and John Hill, Central Securities

Thesis

Aon is acquiring Willis Towers Watson, and we see this as a strong opportunity given the cash flow characteristics of insurance brokers. We believe that the cost synergies from this acquisition could exceed management's estimates, potentially doubling free cash flow per share over the next four to six years.

Did it work?

inconclusive confidence: low

The thesis centers around the acquisition of Willis Towers Watson by Aon and the anticipated cost synergies that could significantly enhance free cash flow per share. However, without specific price performance data or a clear timeline for the realization of these synergies, it is difficult to assess whether the thesis has played out. Therefore, the outcome remains uncertain.

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