Conclusion on Site Consolidation

The question of consolidating sites must be answered against the background of a long-term perspective. But even in the long term, merging sites does not always pay off. What really matters is the synergy potential that can be tapped. Approach such considerations realistically.

A site merger requires cash and is a burden on earnings in the short term. You must be able and willing to “afford” a relocation. In the long term, site consolidation can create a business unit of a size that is more visible on the market and more attractive to investors than individual smaller sites. The value of a company can increase as a result of a merger of sites, because the expected future earnings are included in the calculation of the value. If the sum of the future expected discounted earnings exceeds the investment in the site consolidation project, the decision is correct from the investor's point of view.


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