CASE STUDY
Target Identification for a Consulting Firm
Industry
— Travel
— Car Rental
Duration
— 6 months
Team
— 1 Managing Director
— 1 Vice President
Services
— Corporate Development
— Investor Relations
From Operations to Ownership: Enabling Executives to Acquire a Car Rental Franchise
A car rental franchise of a major global brand was up for sale. The buyers—an independent sponsor team of car rental executives—had deep operational expertise and a vision to enhance the business by implementing more efficient rental models. However, they lacked experience in building financial models and structuring an investment pitch to secure financing. To successfully acquire the franchise, they needed robust financial modeling, KPI-driven insights, and investor-ready materials to demonstrate the value of their approach. They engaged us to bridge this gap and help them structure a compelling acquisition case.
The Execution
To support the independent sponsor team, we developed key financial tools and structured a financing approach:
Built a Detailed Bottom-Up Financial Model – Developed a granular model segmented by location, business line (airport, insurance, etc.), and key KPIs such as revenue per car, revenue per transaction, and cost per transaction. This allowed the operations team to evaluate the business through their operational framework and assess how their strategies could enhance value.
Developed a BI Dashboard for Data-Driven Decision-Making – Created an interactive business intelligence (BI) dashboard that provided insights into underperforming areas and quantified the impact of the planned operational improvements. This helped the management team effectively communicate their value-creation strategy to investors.
Structured a Tax-Advantaged Financing Strategy – Identified a tax exchange opportunity that enabled the business to refinance its car fleet at a higher loan-to-value (LTV) ratio. This significantly reduced the equity capital required from investors. We also assisted in negotiating financing terms with alternative fleet lenders, further optimizing the capital structure.
Enhanced Investor Confidence & Negotiated Terms – The granular insights from our financial model and BI dashboard allowed the investor group to demonstrate a deeper understanding of the business than even existing management. Armed with this data, they successfully convinced investors of the superior returns their operational strategies could generate and secured favorable investment terms.
The Results
The operations team secured multiple investors for both fleet financing and equity investment, allowing them to submit a credible and competitive bid for the franchise. The financial model and KPI dashboards developed during the acquisition process were to be transitioned into the operational foundation for managing the business post-acquisition. By minimizing the required equity investment and showcasing strong upside potential, the sponsor team positioned themselves to generate significant long-term value as operators.
