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Branch-based Services

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HSE Services Provider
Customer & Market Due Diligence of Leading HSE Services Company: Understanding Market Dynamics/Size as Key Input to Round 2 Bid Decision

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.

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Heavy Equipment Rental Company
Rental Operations Improvements for Heavy Equipment Rental Company:  Diagnosing Performance Deficiencies at Data-rich But Information-poor Branch-based Underperforming Business to Identify EBITDA Improvement Opportunities/Plan for Their Capture

Identified $6.4MM in quick-win EBITDA improvement opportunity in rental, parts, and services businesses by analyzing the company’s revenue drivers, cost structure, and equipment utilization. Working with management, developed a detailed 6-month implementation plan to enable rapid capture of operational improvement opportunities and to establish long-term strategic initiatives to drive top- and bottom-line growth. Management is successfully implementing value creation plan and, within 3 months, has already captured $3MM in EBITDA improvements (vs. same quarter in previous year).

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Testing Services Provider
Operational Due Diligence of Testing Services Provider:  Identifying Consolidation Synergies from and Operational Improvement Opportunities in an Add-On Acquisition

Conducted a 4-week operational due diligence to: 1) identify and quantify facility consolidation and other synergies; 2) determine cost additions and operations improvement opportunities; and 3) establish current asset and labor utilization. Gotham worked hand-in-hand with our client to build a comprehensive and reliable cost and capacity fact base, conducted detailed tours of all the facilities, assessed several site consolidation options, and benchmarked operational metrics across the 2 companies. Gotham’s due diligence findings allowed our client to confidently proceed with the transaction; client is already capturing synergies identified during the due diligence.  

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Mental Health Services Provider
Customer & Market and Operational Due Diligence of Leading Private Pay Residential Mental Health Services Provider:  Establishing Program-Level Competitive Positioning and Operating Performance 

Gotham conducted a customer & market and operational due diligence of a leading multi-program player in the private pay residential mental health services market, serving adolescents and young adults with a broad array of behavioral disorders. In line with the bid timelines, Gotham structured a 2-phased effort, with Phase I effort focused on understanding the overall market and referral dynamics, the target’s overall competitive positioning, and the growth opportunity and Phase II on program-level operational performance, reputation/competitive positioning, and recessionary risk. Gotham: conducted 43 interviews with referral sources, competitors and industry experts; built a bottom-up market sizing model; developed a comprehensive competitor database; and built robust operational performance fact packs for each of the target’s programs. Gotham’s fact-based assessment gave our client the conviction to win the auction with an aggressive bid.

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Plumbing and Drain Cleaning Services
Customer & Market Due Diligence of Plumbing and Drain Cleaning Services Company:  Establishing Target’s Brand Reputation and Growth Opportunities

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.       

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Inspection, Cleaning, and Repair Services
Customer & Market Due Diligence of Municipal/Utility Services Company:  Deciphering a Niche Market to Validate Target’s Growth Plan

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.      

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