Delivering Cost Reduction in Technical Facility Management: Post-Merger Synergies in Action

Client Challenge

The company set ambitious growth targets that require inorganic expansion to achieve. Following a recent merger, the integration of operations revealed a complex and overlapping supplier base. To unlock merger synergies, an in-depth analysis of supplier spend and categories was conducted, uncovering significant opportunities for consolidation and cost savings. The challenge now is to realise these identified synergies through structured supplier negotiations while ensuring business continuity and quality.

H&Z Approach

A small but dedicated team began collecting and preparing spend data and supplier contracts from both the acquired company and our client, followed by detailed spend and contract analyses to benchmark conditions and identify overlaps. Based on this transparency, we defined focus suppliers and established supplier clusters, which served as the basis for developing initial optimisation hypotheses. 

These hypotheses were enriched by outside-in perspectives, drawing on market benchmarks and best-practice levers. Building on this foundation, we identified concrete measures and savings initiatives and quantified their potential impact. 

Finally, the results were consolidated into a comprehensive Value Creation Plan, providing a clear roadmap for implementation and synergy realisation. 
 

Execution was carried out by H&Z experts, working alongside Procurement and representatives from core business functions. The primary value levers included competitive tendering, structured commercial negotiations, specification optimisation. This hands-on, collaborative approach ensured both rapid savings impact and sustainable transformation of the supplier base.

About the Client

The client has established itself as one of Europe’s leading real estate and facility management companies. Headquartered near Frankfurt, the group employs more than 40,000 people across 30+ countries and generates revenues of around €4 billion annually.

What sets the client apart is its strong focus on Technical Facility Management. The company ensures the reliable operation of complex building systems—ranging from HVAC and electrical infrastructure to energy optimisation and predictive maintenance. By combining engineering know-how with digital platforms, IoT solutions, and AI-driven analytics, the company delivers measurable efficiency gains and helps clients meet growing sustainability and compliance demands.