Post-merger integration and change management for a global car rental provider

Post-merger integration and change management for a global car rental provider

Post-merger integration and change management for a global car rental provider - case study's summary

Background and Challenges

A leading American multinational car rental company has recently acquired an Italian Company with a wide presence and solid territorial relationships. However, the market in which this acquisition has been going on is highly competitive and unfolds strong operational and price pressure.

The company has asked Tefen to help it to set up a swift and effective integration process, in order to achieve synergy and consolidate its market positioning. Furthermore, the company has asked Tefen to help it overcome change management issues related to culture and organizational/infrastructure differences due to the integration, and preserve previously existing value elements.

Tools and Methodologies

The methodology focused on four different dimensions:
1. Integration process structuring and targets - including structuring the intervention areas and projects was made, along with setting goals and allocating resources.
2. Strategic planning - defining a roadmap and milestones within it
3. Change management - including an active program management, including change management, risk mitigation, and more
4. PMO oversight - structuring bottom-up business cases, target setting and monitoring financial achievement performance metrics.

a man lifting his hands in the air, below an arrow-cloud

Results

This ongoing project has already achieved the goal of preserving the following existing value elements:

  • The social plan was implemented and the HQ consolidated
  • The commercial cross-selling opportunities were deployed
  • The structures integrated at both international (Service Center, Revenue Management, etc.) and local (Maintenance, Fleet, etc.) levels
  • The network capillarity rationalized and additional cost synergy opportunities achieved

Also, s a result of the project a full integration is expected within 1.5 years.

And above all, this ongoing integration has a year-to-date EBITDA* of almost 5 M€ and a forecast of ~21 M€.

 

*Earnings Before Interest, Taxes, Depreciations, Amortizations

 

 

Saverio Russo

Director at Tefen Europe

Performance Improvement, Transformation and Change Management Expert

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