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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Analyzing Retail Expansion Opportunities in Key States and Establishing Competitive Threats in Market Sub-segment for Premium Home Appliance Manufacturer
Conducted Customer & Market Due Diligence to pin down the geographic expansion opportunities and competitive dynamics in the premium home appliance market. Interviewed 150+ store managers at specialty appliance retailers and distributors in key states to validate and prioritize post-acquisition expansion plans, developed a robust state-level fact base on the overall demand for the target’s appliance sub-segment utilizing government, industry, and company data, and prioritized geographies. Based on Gotham’s findings, PE client successfully proceeded with the acquisition.
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Developing Multi-brand Growth Strategy in Preparation of PE Exit at Consumer Electronic Device Provider:
Established feasibility of multi-brand strategy to support a transformative add-on acquisition, created company’s domestic and international growth strategy to position the company for a successful exit in 18-24 months, and developed an actionable strategic plan. Effort included: interviewing 160+ government officials, competitors, consumer/influencers, and other industry participants; researching market, competitive, and regulatory dynamics; building robust state-by-state market size/growth and cannibalization models; and developing multi-brand, Canada entry, and product line expansion strategies. Gotham’s assessment and recommendations allowed the client to move forward with the add-on acquisition and enter Canada, as well as start executing near-term aspects of growth plans to set stage for exit.
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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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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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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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