Grupo Ferrovial and the acquisition of Amey
Grupo Ferrovial and the acquisition of Amey
The case is about
- the events leading to the rapid deterioration of Amey in the UK in 2002
- the acquisition, in a distress sale, by the Grupo Ferrovial
- the subsequent recovery of Amey´s business
- its integration into Ferrovial Servicios
Grupo Ferrovial:
Construction
Value chain, value shop, value network.
Grupo Ferrovial has a mixture of value chain and value shop (most important resource to Ferrovial: the employess). Ferr. has no factories, leaning towards value shop.
Their approach before entering projects is the product of these questions: What is needed? What demand are there? How may the project be solved? How much will it cost? Project understanding.
Whats is Grupo Ferrovial before the acquisition?
Railway. Maintenance. A bit like ISS. Making sure things are there. A lot of construction. Building roads as well. Takes long time to finish. Costs more than railway, needs more capital.
Spain was too small, wanted to grow. Internationalisation. What does organisations need in order to grow? Knowledge and expertise. Need to understand British sector. Wish to diversify themself.
Amey:
Smaller business, lots of ideas. Have had a change in management. Amey was comparable to Ferrovial before the management change. Before the change they were unidirectional and a good complementary business to Ferrovial. Amey also wanted to grow outisde of its own country. Around 2000, when the dot.com bubble bursted. Amey wanted to make software, which was an unknown industry to Amey. Overambigous market expansion by Amey, because they did not know much about software. Amey lost its identity and its integrity.
What made Amey an acquisition candidate?
Amey could no longer maintain its own obligations. The bank kept Amey alive. Provided capital. Told Amey to either restructure or to sell. The bank was involved in the inauguration of the new CFO through Deloitte. The bank now had its own people
The case is about
- the events leading to the rapid deterioration of Amey in the UK in 2002
- the acquisition, in a distress sale, by the Grupo Ferrovial
- the subsequent recovery of Amey´s business
- its integration into Ferrovial Servicios
Grupo Ferrovial:
Construction
Value chain, value shop, value network.
Grupo Ferrovial has a mixture of value chain and value shop (most important resource to Ferrovial: the employess). Ferr. has no factories, leaning towards value shop.
Their approach before entering projects is the product of these questions: What is needed? What demand are there? How may the project be solved? How much will it cost? Project understanding.
Whats is Grupo Ferrovial before the acquisition?
Railway. Maintenance. A bit like ISS. Making sure things are there. A lot of construction. Building roads as well. Takes long time to finish. Costs more than railway, needs more capital.
Spain was too small, wanted to grow. Internationalisation. What does organisations need in order to grow? Knowledge and expertise. Need to understand British sector. Wish to diversify themself.
Amey:
Smaller business, lots of ideas. Have had a change in management. Amey was comparable to Ferrovial before the management change. Before the change they were unidirectional and a good complementary business to Ferrovial. Amey also wanted to grow outisde of its own country. Around 2000, when the dot.com bubble bursted. Amey wanted to make software, which was an unknown industry to Amey. Overambigous market expansion by Amey, because they did not know much about software. Amey lost its identity and its integrity.
What made Amey an acquisition candidate?
Amey could no longer maintain its own obligations. The bank kept Amey alive. Provided capital. Told Amey to either restructure or to sell. The bank was involved in the inauguration of the new CFO through Deloitte. The bank now had its own people