Smoke_and_Mirrors_S.pdfVIP

AAG – World Roamer Acquisition Operational and Strategic Due Diligence Smoke and Mirrors Consulting November 4, 2001, London, ON Executive Summary World Roamer is in play and AAG must decide whether or not to acquire Acquire World Roamer and create a uniform culture within AAG Integration Implementation Key Recommendations Acquire World Roamer purchase price range $1.1 - $2.2B ? Profitable company with tangible brand equity Consolidate backshop activities of all product lines ? Leverage cost synergies Create best practice organization ? Develop uniform culture Transition organization to cross-functional teams ? Improve knowledge sharing and best practices Expand CRM initiative to utilize customer information for all product lines ? Maintain customer through product lifecycles Strategic Due Diligence Operational Due Diligence Decision to Acquire Background Why World Roamer? Positive strong, brand recognition No overlap with current AAG customer segments Acquisition creates a high barrier to entry for other premium automotive companies - WR is the only high end SUV available for acquisition Provides opportunity for expansion into untapped AAG markets Benefits of Acquisition Impetus for change. Diverse organizational cultures provides opportunities to build a new uniform culture Fills AAG’s SUV gap and creates a full suite of vehicles in the premium market Cost savings as a result of vendor consolidation Quality issue resolution through internal consulting, as well as TTM reduction via the same process Expansion of dealer networks into emerging regions such as South America, Africa, and Central Asia Provides an “entry level vehicle within the luxury portfolio Enable integration of customer information into a CRM database that will allow cross selling of vehicles as customers move up the age/income matrix Culture change and full product portfolio are key aspects of the WR acquisition Strategy Valuation Transition Clear Purpose and Key issues Expecte