Our client was a global Travel Retailer with operations in over 40 countries and a global market share of 15% at the time, with over 20 000 shops and a revenue of close to 4 billion EUR. The client had just realized an acquisition of one of their key competitors in the Travel Retail Industry increasing total revenue and global presence by approximately 30%.
Ambition of the project was to integrate the two organisations and realize the potential synergies. In addition, to identify and define an implementation plan to realise up to 10% EBITDA improvement in commercial synergies, and to ensure an effective integration of geographical fit.
The overall project followed a standard PMI procedure:
The project was set up with seven organizational integration streams and five streams focusing specifically on identifying commercial synergies. All work streams were set up with clear objectives, separate integration teams, defined key activities and deliverables.
Each work stream used internal project leaders with coaching from Bene Agere, ensuring internal ownership and “high leverage consulting”, allowing the client to use very few consultants considering the complexity engagement.
Within each organization the approach was to analyse the “As Is” structure, capabilities, processes and tools and rapidly take decision on whether to:
B) Use one of existing
C) Consolidate globally
The project results:
– Organizational synergies identified, common processes, responsibilities and work methods established.
– Commercial synergies target identified broken into five key areas included in 2015 budgets.
– Synergies delivered according to plan
For more information about this case, please feel free to contact us