He'll have a lot more than employment tribunals on his mind

A new year, a new name – but Stuart Reid will have a lot more than cosmetic changes or even employment tribunals on his mind. 2009 is the year when Venture Preference (or Bluefin, if we have to) must make good on its promises. With £700m GWP, 2000 employees and well over 60 offices, that is no small task. Perhaps more than any other consolidator, Bluefin was formed out of acquisitions – there is no one core business that the rest can be built around. Reid has to essentially mould dozens of disparate businesses into one, entirely new model. His French bosses will be watching carefully – as will the rest of the market. So what does success look like?

The word “integration” is frequently bandied about by the consolidators. It means the painful and often long drawn out process of bringing businesses that were once separate – and possibly even competitors – together. This will necessarily entail office closures, business restructuring, and yes, in some cases, redundancies. On the brighter side, it will involve economies of scale, taking the best habits and products from one office and offering them across the group, and greater opportunities for advancement for those staff who do remain.

Anyone can buy businesses: it’s high octane, glamorous and adrenaline fuelled. All the consolidator bosses are very good at it. But this year, as the acquisitions dry up and the lenders start looking for a return, they have to prove that they are also good at running those businesses. Increasing EBITDA solely through acquisition will not wash in a recession. The consolidators that survive 2009 will be the ones that successfully integrate their businesses, bringing about organic growth in profits.