Restructuring and sale of a credit card processor


Initial situation and project goal

As a former monopoly, the customer was previously the market leader in the technical processing of electronic card transactions. With the deregulation of the German market for foreign competitors, the company's revenues and profits came under increasing pressure. EY Innovalue was requisitioned to restructure the company and to make it competitive once again, thereby also making it attractive as a potential take-over candidate. At that point in time, the company was under the ownership of a consortium in which all three pillars of the banking industry were represented.


Project steps

The most important project milestones include:

  • Market and competitive analysis
  • Cost analyses and re-budgeting in order to quantify the cost reduction potential
  • Functional analysis for assessment of the resource requirements
  • Reorganisation under consideration of the omission of an entire level of management
  • Realignment of the sales team for improving the service provided to the existing (portfolio) customers as well as the pro-active acquisition of new customers 
  • Long-term financial planning under consideration of the profit improvement potentials as well as the required investments
  • Support of the management team within the scope of the sales process


Project results and outlook

  • Strategic realignment
  • Simplified operations model including efficient structures and simplified processes
  • Significant improvement in results within an 18-month period, driven by cost reduction and, in particular, increase in revenues
  • Successful sale of the company to the global market leader