FLEET MANAGEMENT CONSOLIDATION SET TO RESUME

After little activity for several years, industry insiders now believe the time is ripe for further consolidation of the fleet management industry.

Favourable conditions, including steady markets and ready availability of money, mean the time could be right for mergers and acquisitions to pick up where they left off after the global financial crisis in 2008.

Big players in the fleet and salary-packaging industry are said to be investigating consolidation by looking to acquire smaller competitors.

With no new entrants to the sector, the road is clear for the rich to get richer and the big to get bigger. Larger organisations that have not grown as much as they desired are seeking to take advantage of affordable capital and grow via acquisition.

Affordability of scale is another motivating factor for businesses seeking to lower costs and increase efficiencies. The lease market is seen as having limited potential for growth.

Smaller operations are seen to have given customers a higher level of service and thus have thrived over recent years, making them attractive targets as bolt-on acquisitions.

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