Building & Construction Services
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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CUSTOMER & MARKET DUE DILIGENCE OF PROPERTY MANAGEMENT COMPANY: ESTABLISHING DIFFERENTIATED POSITIONING AND GEOGRAPHIC EXPANSION OPPORTUNITY
Conducted 3-week customer & market due diligence to: (1) establish target's addressable market and competitive positioning/reputation within its market; (2) assess market trends in target's core and expansion markets; and (3) analyze potential impact of recession on target’s business. Gotham conducted 75+ anonymous and “warm introduction” interviews with various types of property owners and property managers; built competitive landscape; profiled market trends and established market size; and modeled recession impact on the target’s revenue and EBITDA. Gotham unpacked complex market and competitive dynamics at a granular level and articulated the target’s niche positioning and improvement opportunity. Our client successfully closed the transaction and acted on our recommendations to professionalize this entrepreneurial business.
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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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Customer & Market Due Diligence Of Engineering Consulting Firm: Validating Market Opportunity To Create A Super-regional Player
Conducted a 4-week customer & market due diligence of an engineering consulting firm to confirm that the target was a solid platform with acquisition targets available to create a super-regional player. To this end, Gotham: conducted 100+ interviews and 100+ online surveys with engineering services customers; built a bottom-up market sizing model using Dodge construction activity data to establish market growth trends and market share by end-market and state; backtested the target’s sales mix to determine potential impact of a recession on the target’s business; and analyzed over 1,475 engineering services firms to identify 110 potential acquisition targets. Gotham’s comprehensive assessment provided our client with the facts and comfort level necessary to compete aggressively in a hotly-contested auction.
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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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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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