Engineering/ Technical 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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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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Operational Due Diligence of Testing Services Provider: Rapidly Validating Margin Improvement Opportunities and Assessing Capacity/CapEx Risk
Conducted 2-week operational due diligence to validate margin improvement opportunities and assess capacity/CapEx risk. Gotham visited 7 facilities and conducted full-day operations review with management to understand operations management approach/processes and visions/plans moving forward. To fill gaps in this data poor situation, we performed various in-depth analyses – recasting labor cost structure, analyzing job-level data to understand profitability, building a bottom-up labor utilization and fixed cost model to project margins with revenue growth, etc. Gotham’s due diligence work enabled our client to move forward with confidence and successfully acquire target in a proprietary deal.
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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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Operational Due Diligence of An Entrepreneurial Specialty Engineering Services Firm: Instilling Process Discipline Required for Future Growth While Sustaining Performance-oriented Culture
Conducted operational due diligence to assess the firm’s prospect-to-cash cycle processes and establish a revenue forecasting approach. Our effort included: building a robust fact base of the company’s cost and operational performance using data from ERP and offline database; mapping and assessing sales & marketing, revenue generation, and people management processes; and visiting/interviewing management across multiple offices. Gotham provided an explicit top-level operations end-vision and value creation plan bolstering the company’s ability to support growth, giving our client the necessary confidence to successfully complete negotiations.
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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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