Results by Industry:

Results by Capability:

Customer & Market Due Diligence

Case # 167

Regional Authentic Refrigerated Mexican Food Manufacturer:  Conducted a 2-phase due diligence to: (1) validate the national expansion opportunity in grocery, (2) validate the growth opportunity in foodservice, and (3) assess operations risks and opportunities. Gotham interviewed ~70 retail and foodservice buyers and surveyed ~4,000 consumers to establish target’s brand positioning and growth opportunity. We also leveraged Nielsen data to build an MSA-level market sizing model to establish a $2B addressable market size. To support national expansion, Gotham established second plant economics and profiled the competitive landscape to identify acquisition candidates. Our operational assessment did not reveal any significant commodity pricing margin risks and, in fact, identified material yeild and labor savings opportunities. These fact-based conclusions gave the client the conviction needed to submit an aggressive bid to win this hotly contested auction.       

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 # 157

Municipal/Utility Wastewater Infrastructure Inspection, Cleaning, and Repair Services:  Conducted 4-week customer and market due diligence to:  (1) establish municipal budget outlook; (2) establish market size and growth outlook for wastewater infrastructure services;  and (3) understand the target’s competitive positioning. The effort included:  124 interviews with municipal and utility officials; in-depth research of environmental regulations; top-down/bottom-up municipal budget analysis; and creation of 3 bottom-up marketing sizing models. Gotham’s comprehensive, fact-based approach verified that the target’s aggressive growth plans were realistic and the target had established a strong reputation with its customers. This allowed our PE client to gain confidence in the target’s ability to meet its revenue plan and move forward with the acquisition.      

Case # 156

Oil & Gas Aftermarket Parts Supplier:  Conducted focused customer due diligence to gain critical customer insights from major drillers regarding purchasing processes, competitive positioning, and market trends. Gotham conducted 31 anonymous interviews with personnel at rig sites, maintenance yards, and corporate headquarters of on-shore and off-shore drilling companies to:  1) identify selection criteria and determine whether purchasing decisions are made at the drill site or at corporate; 2) establish the target’s strengths and weaknesses vis-à-vis key competitors; and 3) understand market risks and opportunities in light of low oil prices and technological changes. Gotham’s deep customer insights and first-hand customer account of market trends allowed our PE client to submit a well-informed bid.     

Case # 154

Family-Owned Flexible Packaging And Labeling Converter:  Conducted rapid, focused customer & market due diligence to:  1) evaluate market dynamics, leveraging our proprietary knowledge base to establish market size, segmentation, and trends by packaging/label type, end-market, and material type; 2) determine strength of customer relationships by interviewing major customers after addressing management’s sensitivities regarding customer contact; 3) establish competitive landscape by leveraging our proprietary database of flexible packaging and labeling companies and by interviewing additional small direct, local competitors; and 4) evaluate target’s exposure to plastic resin price volatility by reviewing target’s vendor/customer agreements and analyzing purchasing/sales data to demonstrate the effectiveness of informal price adjustment mechanisms. Gotham’s rapid assessment of market dynamics, customer relationships, the competitive landscape, and commodity price risk gave our client the confidence to provide the necessary capital to complete the acquisition.    

Case # 153

Off-Road Vehicle Aftermarket Parts Supplier:  Conducted customer & market due diligence to establish the aftermarket parts market size/growth for key end-markets, identify potential threats from OEMs/distributors, and understand the eCommerce growth opportunity in an information-poor market:  1) conducted over 200 interviews with decision-makers at major OEMs, distributors, dealers, repair centers, and retailers; 2) established off-road vehicle aftermarket part market size/growth; 3) quantified channel-specific market trends by analyzing the target’s sales by distribution channel at the SKU level; and 4) established the competitive landscape at each step of the value chain by profiling major OEMs and distributors in the powersports, agriculture, and lawn and garden markets. Gotham’s intensive primary research and analytical effort provided a nuanced understanding of the market outlook and clarified threats/opportunities, thus allowing the client to make a well informed bid in a highly competitive auction.    

Case # 152

Road Maintenance Equipment Supplier:  Focused Pre-LOI due diligence effort on establishing state DOT/municipal budget dynamics (the target’s greatest dependency), the target’s competitive positioning, and growth trends of the target’s road maintenance equipment market. Gotham: 1) compiled 10 years of state DOT budget details for 30 key states; 2) conducted ~50 interviews with state DOTs (and some municipalities); 3) built a state DOT equipment fleet profile, including fleet size, replacement cycle, age distribution, and manufacturer by equipment type; and 4) established the competitive landscape of the road maintenance equipment market. Because Gotham’s fact-based assessment painted a less optimistic picture than management’s projections, our client decided not to pursue the acquisition.   

Case # 150

Private Label Canned Food Manufacturer:  In sync with the needs of each stage of the deal process, conducted phased customer, market, and operational due diligence, initially focusing on:  1) growth outlook – established the target’s category presence, identified key market trends, and built a model to project category growth; 2) competitive positioning – interviewed 27 PL and category buyers from supermarkets, wholesalers, food service companies, and brokers; and 3) CapEx and operational risk – visited the target’s 3 plants, assessed capacity, and reviewed operational improvement plans. After the client signed the LOI, Gotham conducted:  a deep dive assessment of margin risk, using 7-year SKU-level price/margin data and outlook for major input cost drivers; and an in-depth operational diagnostic of material yield, direct labor, and inventory costs.  

Case # 143

Electric Utility Outsourced Services Company:  Conducted 4-week phased customer & market due diligence to evaluate revenue and margin sustainability risk vis-à-vis the target’s core business and assess geographic expansion opportunities required to create a super-regional player. Developed bottom-up CapEx and Operations & Maintenance spend model of 25 key utilities, including 10-year projections; interviewed 30+ key stakeholders at the target’s top customers and potential customers; conducted detailed analysis of the target’s jobs database and forecast; and conducted extensive primary and secondary research. Based on Gotham’s findings, our PE client significantly revised down their bid and was able to secure the target at a more favorable valuation, with a top-level expansion strategy in-hand.

Case # 142

Upstream Oil & Gas Protective Solutions Provider:  Conducted 4-week customer & market due diligence to:  (1) establish outlook for North America oil & gas drilling; (2) estimate market size and growth for new and reconditioned protective products; and (3) evaluate target’s competitive positioning. For this effort, Gotham interviewed 150+ customers and competitors, leveraged our proprietary industry knowledge base, performed extensive primary and secondary research to pin down oil & gas drilling dynamics, and developed a detailed bottom-up model for market sizing and growth. As a result of Gotham’s findings, our client confidently pursued and closed the transaction.

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 # 140

Filtration Equipment Manufacturer:  Conducted 3-week customer & market due diligence to:  (1) assess the impact of potential metal price reduction on target’s revenue by developing a robust understanding of metals pricing, mining economics, and historical trends; and (2) establish growth opportunities in adjacent end-markets (chemicals and industrial wastewater). For each end-market, we:  established production/treatment processes, filtration technologies, and market dynamics; built market sizing/growth models; and conducted 50+ customer calls to establish/validate filtration requirements. We also built a comprehensive view of different filtration technologies and their usage, as well as competitive dynamics in the filtration equipment industry. Based on our findings, PE client confidently moved forward with the transaction and closed the deal.

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 # 137

Analytics Outsourcing Company:  Conducted competitive due diligence to pin down nature of current and new competition, including  product- vs. service-focused, lower-end  vs. higher-end analytics offerings, and on- vs. off-shore delivery models. Conducted extensive, hour-long interviews to gain a clear understanding of an increasingly crowded competitive field, allowing our PE client to understand critical industry/competitive dynamics and proceed with an appropriate bid.  

Case # 136

Snack Foods Flexible Packaging Converter:  Conducted 4-week customer & market due diligence to evaluate:  competitive risks from large converters; potentially high CapEx requirements; and target’s reliance on 9 key accounts for almost all of projected growth. Interviewed 50+ key competitors, snack foods customer brand and packaging managers, and printing equipment OEMs; conducted exhaustive research on printing press equipment technologies, snack foods end-market dynamics, and flexible packaging market/competitive dynamics; and analyzed company/market sales data on key customer accounts. Based on our findings, PE client confidently moved forward with the transaction and closed the deal. 

Case # 135

Medical Packaging Manufacturer:  Conducted 2-week market due diligence to validate target’s domestic and international growth opportunities, assess risks associated with its reliance on single source supplier, and identify potential acquisition opportunities. Interviewed packaging industry experts and medical device customers; researched DuPont’s Tyvek manufacturing processes/capacity, competing packaging material technologies, and domestic/international medical device industry demand drivers/trends; and leveraged government and industry data to develop a robust fact base, including “bottom-up” medical packaging size/growth model, International market profiles, and potential adjacent-market acquisition targets. Gotham’s findings enabled our clients to confidently move forward with their Round 2 bid.

Case # 134

Fluid Power Component Manufacturer:  Conducted 3-week customer & market due diligence to validate target’s growth outlook in key end-markets (Agriculture, Construction, Compaction, and Trucking Equipment), establish the demand cycle stage of each end-market, and pin down competitive risks (e.g., Chinese suppliers entering the market). Gotham conducted 75 customer interviews, researched and analyzed equipment component requirements, macro-economic demand drivers, competitive landscape, and target’s customers’ growth outlook, and built “bottom-up” size/growth models for each end-market. Gotham’s due diligence findings allowed the PE client to pursue the transaction with confidence.

Case # 133

Custom Plastic Extruder:  Conducted 1-week market due diligence ahead of the final bid deadline to validate growth potential in its key end-markets and assess technology risks. Analyzed the competitiveness of plastics extrusion technology vis-à-vis alternative technologies and established the market and competitive dynamics of the overall extrusion specialty products. For each of the target’s 6 core end-markets, Gotham:  (1) established growth dynamics by looking at key market indicators; (2) evaluated the target’s competitive strengths, including price, technology and material considerations, relationships with OEMs, compatibility with regulatory requirements, and geographic advantage; and (3) reviewed product and channel dynamics. Gotham’s findings enabled the client to make bid decision with confidence.

Case # 130

Fluid Power Equipment Repair & Remanufacturing Company:  Conducted customer & market due diligence to validate adjacent market growth opportunities, including offshore oil & gas, forestry, marine, and civil infrastructure and other end-markets under consideration. Interviewed 150+ competitors, customers, prime contractors, and other key value chain participants, researched complex technical requirements, and leveraged government and industry data to develop a robust fact base, including size/growth models for each end-market, geographic gap analysis, and profiles of key competitors/potential acquisition targets. Based on Gotham’s findings and recommended expansion strategy, PE client closed the deal and is pursuing an acquisition to fill a key geographic gap.

Case # 128

Test & Measurement Equipment Distributor:  Conducted OEM, Customer & Market Due Diligence to confirm continued industry shift to indirect channel, establish target’s competitive positioning, analyze rental business attractiveness, and explore adjacent market expansion opportunities. Created market sizing model to validate market size and growth prospects, conducted 50+ customer and OEM interviews, modeled financial impact of indirect channel on OEMs, and performed extensive research. Gotham’s 2-phasse due diligence effort enabled our client to win the auction and successfully complete the acquisition of target.

Case # 127

$1B Distributor Of Trucking Products:  Conducted Market Due Diligence to evaluate the economic attractiveness of client’s geographic expansion plan for Minnesota, Wisconsin, and North Dakota. For each state:  Gotham profiled its economy; identified sector-specific trends and drivers; established state business and regulatory environment; built a robust forecast model of industry-sector-specific GDP and employment; established the relationship between economic activity and the trucking sector; analyzed the historical flow of commodities by transport mode, inbound/outbound destination, and type of product moved; and built model-based forecast of sector-specific trucking activity over the next 5 years. Gotham’s validation of the macro-economic prospects of the 3 states gave the client confidence to pursue its 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 # 120

Specialty Engineering Consulting Firm:  Conducted Customer & Market Due Diligence for Midwestern PE client to sort through target’s complex market dynamics, validate its competitive positioning, establish the criteria driving customer buying behavior, and provide clarity on growth opportunities moving forward. Profiled over 180 competitors, interviewed 60+ customers, and conducted extensive secondary research on market dynamics to provide PE client with a clear picture of in-going growth opportunities. Client proceeded with the acquisition based on Gotham’s findings.

Case # 118

Regional Outpatient Physical Therapy Provider:  Conducted Customer and Market Due Diligence to develop clarity on the target’s competitive positioning, reputation among its referral base, and future growth opportunities. Interviewed 170 medical professionals, leveraged Gotham’s network of healthcare experts, analyzed government data on procedures/injuries, and built a bottom-up market size/growth model for the physical therapy market in target’s current metropolitan area, as well as in other metropolitan areas with similar socioeconomic characteristics. Armed with Gotham’s findings, PE client was able to confidently move forward with the transaction.

Case # 116

Family-Owned Premium Specialty Foods Manufacturer:  Conducted Customer and Market Due Diligence to establish/validate that company could support 10+% CAGR growth and expand nationally. Analyzed IRI/Nielsen data, conducted extensive secondary research, built and ran scenario models, conducted field research and customer interviews to establish positioning and outlook of premium product companies overall and the target specifically, as well as feasibility and requirements for growing the brand nationally. Gotham team identified 4 growth levers for the company.

Case # 113

$700MM Distributor Of Trucking Products:  Conducted market research and economic assessment of the state of Michigan to validate the geographic market entry strategy of a leading distributor of trucking products evaluating a $30MM add-on acquisition.  Effort included a robust profile of the state’s economy, including a 5-year industry-level projection/modeling of state GDP and employment, and a detailed analysis of the state’s business and regulatory environment.  Client proceeded with acquisition based on projected near-term growth estimates.

Case # 109

$20MM Healthcare Services Provider: Conducted customer interviews and market research to validate company’s business model of providing outsourced services to the healthcare industry. Effort included interviewing (unsolicited) 55 current and potential customers, researching professional background requirements, regulatory environment, payer dynamics, customer willingness to outsource, and competitive landscape to establish market dynamics; and building a bottom-up market sizing model for this early-stage outsourcing market.

Case # 90

$100MM Plastic Container Manufacturer: Conducted 146 customer interviews and market sizing analysis to support an add-on acquisition of residential plastic container manufacturer by a PE-owned $400MM commercial steel container company. Analysis validated market potential and customer perception of the target and since the deal closed, the target has been outperforming projections.

Case # 82

$120MM PE-Owned Energy Services Provider: Conducted customer interviews and market research to validate company’s business model of providing outsourced services to the energy industry. Effort included interviewing (unsolicited) 84 current and potential customers, researching 5 product families and 7 industry sectors to establish service requirements, and building bottom-up market sizing model for this early stage outsourcing market. PE client ($9+B under management) purchased the company and able to increase the top-line by 50% within the first year.

Case # 73

$80MM Material Processing Equipment Manufacturer: In an auction situation, conducted customer and market due diligence to identify customer spending trends and perception of the target company for the buyer. Identified potential for a near-term decline in recent sales levels and uncovered customer concerns regarding the target company's customer service and product innovation, leading the buyer to back away from the aggressive pursuit of the company.