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Specialty Engineering Consulting Firm
Customer & Market Due Diligence of Specialty Engineering Consulting Firm:  Clarifying Investment Potential in Highly Complex Niche Market

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.

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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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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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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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Multi-disciplinary Engineering Services Firm
Operations Improvements at Multi-disciplinary Engineering Services Firm:  Improving Profitability and Revenue Performance

Conducted a 6-week operations assessment to turn around the company’s margin performance and position it for a successful exit in 2-3 years’ time. Analyzed historical project and employee utilization performance; developed target staffing leverage model; and created target business development model to improve efficiency of business development effort while driving profitable revenue growth. Our detailed assessment gave our client a solid understanding and roadmap of the levers to achieve the target margin performance (5-7% points growth); client requested Gotham to provide ongoing support through quarterly performance audits.

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Electric Utility Services Company
Customer & Market Due Diligence of Electric Utility Services Company:  Assessing Customer Risk, Margin Sustainability, and Growth Opportunities

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.

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