Validating Growth and Margin Sustainability in A Consumer Trend-driven Niche Market for 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.
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Establishing Target’s Brand Reputation and Growth Opportunities of Plumbing and Drain Cleaning Services Company
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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ESTABLISHING THE GROWTH OPPORTUNITY OF AN INDUSTRY TRANSFORMED BY CRISIS
Conducted 3-week customer & market due diligence to establish: (1) beauty treatment and conversion trends; (2) the outlook for the salon channel and the opportunity for the target’s beauty treatment at salons; and (3) the opportunity for the target’s beauty treatment in the fitness and at-home solutions channels. Gotham: conducted a 6,000+ consumer panel nationwide survey; 60+ interviews with salon operators, and 40+ interviews with fitness club operators; built a market sizing model; developed a competitive landscape profile in the salon channel and pinned down the consolidation trend; and established market and regulatory dynamics. Gotham provided the client with clarity on this opportunity in an uncertain market and established additional opportunities to grow. These fact-based conclusions helped the client see past the historical market turmoil and gave the client the conviction needed to close the deal.
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Determining Branch-level Margin Expansion Opportunities And Market Position
Conducted 2-week customer & market and operational due diligence to: validate capture of pricing and operating efficiencies at acquired companies; establish local market dynamics and target’s competitive positioning; and assess regulatory and substitution threat. Gotham: surveyed ~750 propane consumers in target’s service areas; identified/profiled key competitors and conducted 32 competitor interviews in target’s local markets; analyzed zip-code-level propane supply, consumption, pricing, and heating degree day trends; determined pricing optimization and segmentation opportunity; assessed substitution threat from natural gas, electricity, and heat pumps; and analyzed pricing, delivery, and backoffiice expenses at 25+ acquisitions. Comfortable with the target’s opportunity to acquire family-owned local propane distributors and capture pricing/operations improvements, our client was able to move forward with an aggressive but well-informed bid.
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Assessing Consumer Willingness to Buy and Lender Willingness to Finance a Lower-priced Product for Leading Mobility Products Distributor
Assessed consumer willingness to buy a lower-priced product and lender willingness to finance the product. Through a consumer panel survey of high-wheelchair-usage consumers (either users or caregivers), and a survey of target’s customer and prospect database, Gotham established that WAV is a need-based product that offers significant quality of life improvement -- a new lower-priced product would open up another ~20% of market. Through our ability to get to the right auto lending decision makers, we were quickly able to establish what the target should expect in terms of financing and which lenders to target. Our client was excited about the opportunity, presented our findings to the target’s management, and pursued a more aggressive bid.
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Assessing Company Positioning and Market Outlook of 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.
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