Independent asset management company -
Post–merger restructuring and integration
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The challenge
Our client, a London and Wolverhampton based independent asset
management company, with 50 staff and several small public sector vehicle
leasing contracts was looking for significant growth opportunities.
The company acquired the vehicle leasing division of a large UK utility
company. The acquired company was based in the M4-corridor, with over 350
staff, 6000 commercial vehicles, 8000 company cars and a PFI contract with
emergency services.
The key challenge of the deal was to successfully
integrate the businesses, continuing to meet contractual service levels and to
ensure customer retention on major contracts.
An additional challenge
facing the newly formed business was the merging of two very different cultures
– a small entrepreneurial company culture with that of a large utility,
with significantly different employment terms and conditions.
Having
identified the acquisition target, introduced the parties and advised on the
deal, Corven was engaged to design and manage the restructuring and integration
of the two businesses, as well as design and implement critical performance
improvement programmes.
Approach
- Structured post-merger integration planning with the Corven/client integration team
- Mapped out all key business processes
- Interviewed management and staff to carry out capability assessments and verify processes
- Ran integrated workshops to identify best practice opportunities
- Desiged the new organisational structure and mapped out new roles & responsibilities (using integrated management teams)
- Ran the staff consultation processes for staff selection, redundancies and new appointments
- Managed the separation of non-core assets
- Planned and managed the relocation of the business from four locations to a central location
- Operational modelling for business growth evaluation and corporate planning analysis
- Identified, planned and lead various performance improvement programmes
Results
- Deal completed for a consideration of £200 million in October 2002
- Market valuation of the company increased from £5 million to c£28 million post integration
- New, management owned organisation structure in place with a 40% headcount reduction and clear accountabilities
- Non-core businesses divested at premium to book value
- Key customer contracts retained and customer relationships maintained
- New management information system in place and KPIs established
- New contracts management process in place and vendor targets agreed
- Business strategy and consolidated funding plan completed and presented to UK financiers
