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Merger Integration Success Stories: Leading Logistics Company

A same-day delivery and courier company with operations in more than 140 cities had acquired its largest competitor. The deal, designed to leverage the capabilities of the companies’ similar geographic reach and customer base, would allow the combined entity to more effectively serve the national logistics needs of retail, healthcare, home delivery, financial institutions and other businesses with time-critical needs.

To maximize value from the merger, the logistics company looked to Alvarez & Marsal to assist in integrating operations. The A&M team helped the newly combined company to:

• Conduct due diligence and identify synergies across
  corporate and operational categories, which resulted in
  significant savings in corporate operations, real estate and cost of service;
• Conduct customer outreach and stabilize customer accounts;
• Retain employees and drivers by standardizing Independent Contractor agreements, and consolidating insurance policies under one platform, which resulted in significant workers’ compensation premium savings; and
• Provide interim management assistance in critical areas, including Chief Integration Officer, Controllership and Human Resources.

Following the successful integration, A&M professionals continued to support the combined entity to realize synergy opportunities during the first year; optimize routes across locations and reduce the number of drivers required to serve the business; institute disciplined driver payroll management programs; improve warehouse productivity; improve billing processes and reduce accounts receivable issues; and address opportunities with customer care and the company’s call center.