Results by Industry:

Results by Capability:

Consumer

Case # 158

Residential And Commercial Plumbing And Drain Cleaning Services:  Conducted 4-week customer & market due diligence to:  (1) validate defensibility of target’s residential business; (2) establish/confirm growth opportunity in the commercial business; and (3) validate the opportunity to expand into the water damage restoration market. Gotham undertook an exhaustive fact-based approach:  consumer panel and customer surveys; commercial customer surveys and interviews across 11 end-markets; deep-dive analysis of several years of job-level data; and detailed competitive landscapes in each of the target’s territories. Gotham’s fact-based conclusions allowed our client to gain confidence in defensibility of the target’s market position and viability of its growth plan leading to the successful close of the transaction.       

Case # 151

Customized Consumer Goods Manufacturer:  Identified $35-45MM in cost reduction opportunities, 2-3x management’s savings plan, giving our client an edge to win the auction. Despite very limited access to the target’s management, plants, and data due to the nature of the auction, Gotham was able to leverage dataroom information, a plant visit, and our relevant experience to build a solid fact base of the target’s cost structure – including a detailed 4-year line-item-level view of the operational cost structure and an analysis of 2,000-employee workforce linking each individual to the specific cost line in the cost structure – and to both validate and expand savings opportunities via a comprehensive outsourcing/consolidation model and an analysis of sales, marketing, customer service, and G&A costs.    

Case # 141

Consumer Life Events Services Company:  Conducted 3-week customer & market due diligence to:  determine consumer buying behavior in target’s core operating segments; validate target’s competitive positioning in mall-based segment; and identify/assess potential end-market expansion opportunities. To analyze each of target’s 3 core segments, we:  1) surveyed a panel of 1,500 consumers; 2) conducted 30+ anonymous interviews with key decision-makers at top customers and potential customers; and 3) performed extensive primary and secondary research. Based on our findings, our PE client was able to prepare an appropriately valued bid.

Case # 139

Consumer Electronic Device Provider:  Established feasibility of multi-brand strategy to support a transformative add-on acquisition, created company’s domestic and international growth strategy to position the company for a successful exit in 18-24 months, and developed an actionable strategic plan.  Effort included:  interviewing 160+ government officials, competitors, consumer/influencers, and other industry participants; researching market, competitive, and regulatory dynamics; building robust state-by-state market size/growth and cannibalization models; and developing multi-brand, Canada entry, and product line expansion strategies. Gotham’s assessment and recommendations allowed the client to move forward with the add-on acquisition and enter Canada, as well as start executing near-term aspects of growth plans to set stage for exit.

Case # 132

Entrepreneurial Specialty Online Sporting Goods Retailer:  Conduct a 2-week market study to establish product and user profiles, market drivers and trends, competitive landscape, and channel dynamics, as well as to build a market size model establishing historical and projected market growth rates. Gotham undertook a bottom-up approach to analyze this niche market with no available market data, including: extensive secondary research; ~50 interviews with retail stores and industry experts; consumer surveys; and creation of 3 market sizing models. By enabling the client’s offering materials to show attractive growth prospects, the company was sold to a private buyer at an attractive valuation.

Case # 129

Entrepreneurial Specialty Apparel Supplier:  Conducted operational due diligence to establish the target’s current operational performance and set the stage for improvements immediately after deal closure. We: identified up to $1.3MM in warehouse cost reduction opportunities and established that existing capacity could support 3.7x current volume by dissecting warehouse processes, material flow, and layout; identified 39% inventory reduction opportunity and detailed end-vision for key supply chain processes; and validated the robustness of front-end sales, marketing, and design capabilities. Within a month of deal closure, management had reorganized the warehouse and started implementing other elements of our value creation plan. 

Case # 126

Premium Home Appliance Manufacturer:  Conducted Customer & Market Due Diligence to pin down the geographic expansion opportunities and competitive dynamics in the premium home appliance market. Interviewed 150+ store managers at specialty appliance retailers and distributors in key states to validate and prioritize post-acquisition expansion plans, developed a robust state-level fact base on the overall demand for the target’s appliance sub-segment utilizing government, industry, and company data, and prioritized geographies.  Based on Gotham’s findings, PE client successfully proceeded with the acquisition.

Case # 124

Entrepreneurial Specialty Apparel Supplier: Conducted Customer & Market Due Diligence to develop a detailed picture of target’s market and competitive dynamics, and to validate shoppers’ lasting preference for target’s products in a rapidly growing niche apparel segment. Built account penetration model across key channels, interviewed 60+ retail buyers and store managers, conducted field research at 20+ stores, and surveyed panel of 500+ consumers to confirm growth and margin sustainability moving forward. Gotham’s findings allowed the PE client to confidently close the transaction and served as a solid fact-base for management post-acquisition. 

Case # 101

$150MM Personal Care Products Company: Identified $9-12.5MM in cost reduction opportunities, which required addressing CosmeticCo's critical gaps in operational basics, which had become exacerbated by fast growth, and its limited understanding of/focus on actual costs. Within 4 months, over $7MM in cost reduction opportunites confirmed or detailed, with $2.5MM already captured on run-rate basis. CosmeticCo continues to implement detailed-out changes to complete capture of near-term savings and then pursue longer-term opportunities.

Case # 94

$250MM Consumer Goods Company: Helped turn around a problematic distribution operation that was creating service problems with leading retailers. Developed standard operating procedures for basic warehouse functions, including inventory transactions, pick/pack/ship operation, cycle counting, and quality audits. Revamped the warehouse organization structure and instituted measurement and tracking to monitor performance. HomeCo now a top 10 supplier to the largest U.S. retailers.

Case # 93

$80MM Fashion Products Importer: Analyzed air freight cost from Asia to identify $3-5MM (32-49%) in cost reduction opportunities from: (1) tighter management of air shipments (including invoice auditing, formal RFP process to find a new freight forwarder, and reduced rush shipments of products and components); and (2) selective migration to container shipments. Helped client capture the opportunities, including auditing past freight bills to discover 13% chargeable weight discrepancy and executing the RFP process to find a new freight forwarder, resulting in a 31% reduction in freight cost. As per our recommendation, Client hired a VP of supply chain to spearhead capture of further savings via continued development of robust processes and migration of increasing amount of freight to sea. A year after Gotham left, FashionCo had dramatically lowered its inbound freight costs and migrated a significant portion of shipments to containers.

Case # 79

$300MM Jewelry Manufacturer And Specialty Printer: Conducted diagnostic to identify areas of opportunity and potential value of operational initiatives. Identified $6-8MM opportunities in jewelry manufacturing and $4-6MM in book printing via application of lean manufacturing, automation, improved customer service, and network optimization. Established a 100-day plan to jump start the opportunity capture. Post-acquisition, using 100-day plan, management able to migrate manufacturing to lower cost countries, outsource product finishing, and close an underperforming facility, leading to the capture of the outlined savings within 12 months.

Case # 77

PE Portfolio $170MM Niche Garment Producer: Conducted an inventory and cost structure diagnostic and created a plan for capture of opportunities at a recently acquired private equity portfolio company. Identified $11+MM in inventory reduction, $1.2–1.9+MM in overhead expense reduction, and $0.4–1.2MM in freight cost reduction opportunities.

Case # 65

$50MM Household Cleaning And Scented Products Manufacturer:  Conducted 1-week opportunity assessment for inventory, labor, material, freight, distribution, and overhead costs from both standalone and synergistic perspective. Identified $3-4MM in cost reduction opportunities and $4-5MM in inventory reduction opportunities. Client acquired the company and merged it with a portfolio consumer goods company. Subsequently, assisted in capturing $4-5MM in inventory and $2MM in freight savings at this growing company which became one of the largest suppliers to big box retailers.

Case # 63

$50MM Private Equity Portfolio Household Goods Manufacturer: Identified and help capture immediate cost savings opportunities in a recently acquired portfolio company that fell short on EBITDA target and violated bank covenants. Effort included 3-4 week development of $1-2MM cost reduction plan and 6-week assistance in capturing $900K labor and outbound freight opportunities, accounting for 15% increase in EBITDA.

Case # 62

Private Equity Portfolio Consumer Goods Manufacturer: In an auction situation, conducted Operational Due Diligence to identify EBITDA and working capital opportunities for a company with China sourcing, domestic manufacturing, and both mass-merchandiser and specialty retailer distribution. Enabled auction win with identified savings of $4-11MM in EBITDA and $13-23MM in working capital.

Case # 61

Private Equity Portfolio Sporting Goods Manufacturer: Assisted 4 client teams and trained client personnel during a post-merger replenishment system enhancement and inventory reduction effort. Developed a centralized inventory and planning model by merging information from 2 separate operating entities. Achieved $8+MM reduction in inventory in 9 months.

Case # 54

Global Cosmetics Products Company: Identified the sources and cost impacts of product complexity for a billion dollar manufacturer of cosmetic products. Initiatives included product simplification and harmonization (including packaging simplification), and optimization of the product launch process via cross-functional communication and use of packaging pallets. Significant savings $38-$40MM were discovered and worldwide rollout is expected after initial successes in the US and Europe.

Case # 8

Leading National Apparel Company: Devised a new supply chain strategy to leverage domestic manufacturing capabilities to decrease concept-to-market time by 67%, reduce inventory levels by 50%, and increase profits by 25%. Developed a dual supply chain strategy - market replenishment strategy for Basic products and market responsive strategy for Fashion products. Created a concurrent DFM product development process, and developed a flexible capacity allocation model for cut & sew facilities.