Zenith Strategy Associates

Equipment Hire

Strategy and value creation services

Overview

The equipment hire sector consists of a range of B2B and B2C segments catering for many different end use requirements, from construction and mining equipment through to consumer leisure rental items. Despite the wide variety of end segments, effective equipment rental businesses aim to optimise the trade-offs between achieving high yields and high utilisation of assets. More sophisticated equipment rental businesses therefore apply a range of approaches, including dynamic pricing, differentiated channel strategies, and digital marketing techniques to optimise fleet returns.

Given the typically very high capital requirements associated with equipment rental businesses, EBITDA is not a particularly useful indicator of company performance. Measures of return on capital, and an effective capital allocation decision-making process, are essential for long-term high performance. In addition, national equipment rental businesses must typically manage a network of branches, requiring effective branch portfolio management. Trade-offs between delegating decision-making to local branch managers vs adherence to national target yields must be balance carefully to ensure sufficient responsiveness to local conditions without excessive margin dilution.

Selected Client Examples

NZ Leading General Equipment Hire Business

Medium Term Strategy and Performance Improvement
  • Developed a strategy which underpinned a doubling in profitability over 3 years
  • Enabled a successful recapitalisation of the business and exit for some investors
  • Now firmly entrenched as leading player in NZ

Leading AU B2B Equipment Hire Business

Turnround Strategy Development and Execution
  • Developed a medium-term turnround strategy for the business, and provided initial execution support
  • Enabled a successful recapitalisation of the business, and eventual exit for key investors

ANZ Leisure Vehicle Rental Company

Commercial Due Diligence and Post-Acquisition Strategy
  • Provided commercial support for the acquisition of a complementary leisure vehicle rental business
  • Developed a post-acquisition integration plan and oversaw the successful launch of a re-branded product offer

Get in touch

Get in touch with us for a complementary 30 min strategy blueprint discussion. During the session, we will review your current strategy process and identify near-term execution opportunities. 

Strategic Blueprint Session

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The four week strategic review cover