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Capability

Customer & Market Due Diligence

We establish a clear picture of the target company’s market positioning and growth potential in even the most complex and data-poor niche markets. Our analytical rigor and broad industry expertise enable us to perform a quick but robust assessment of key market drivers and trends, and build a bottom-up market model to establish reliable market size/growth projections. Through our exhaustive research, including customer, supplier, competitor, and expert interviews, we establish competitive dynamics, technology/service advantages, customer buying criteria, and customers’ perception of the target. We then develop a top-level strategic plan – in essence a post-acquisition growth roadmap (add-ons and organic) for our clients.

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In-store Bakery Supplier
Establishing Consumer Conversion Opportunity by Quantifying Available Whitespace of In-store Bakery Supplier

Conducted a 2-phased due diligence to:(1) determine the penetration levels and conversion opportunity of the target’s bakery supply products; (2) establish the retail bakery market dynamics; and (3) establish the target’s growth potential. Gotham conducted: a Phase I consumer panel survey of 1,116 consumers to validate ingoing thesis on consumer penetration opportunity; a Phase II survey of 2,233 consumers to establish buying behaviour and test potential concepts for driving consumer conversion. We also interviewed 37 retailer bakery executives/category buyers and surveyed 276 in-story bakery employees to establish their decision-making criteria, plans for the category, and requirements for growth, and modeled a complex market size matrix for 34 occasions and 7 product types to estimate the current penetration of the company's products and establish whitespace and conversion opportunities. These fact-based, actionable insights and reliable numbers gave the client the conviction needed to win this hotly contested auction.

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Inspection, Cleaning, and Repair Services
Deciphering a Niche Market to Validate Growth Plan of Municipal/Utility Services Company

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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Mental Health Services Provider
Establishing Program-Level Competitive Positioning and Operating Performance of Leading Private Pay Residential Mental Health Services Provider

Gotham conducted a customer & market and operational due diligence of a leading multi-program player in the private pay residential mental health services market, serving adolescents and young adults with a broad array of behavioral disorders. In line with the bid timelines, Gotham structured a 2-phased effort, with Phase I effort focused on understanding the overall market and referral dynamics, the target’s overall competitive positioning, and the growth opportunity and Phase II on program-level operational performance, reputation/competitive positioning, and recessionary risk. Gotham: conducted 43 interviews with referral sources, competitors and industry experts; built a bottom-up market sizing model; developed a comprehensive competitor database; and built robust operational performance fact packs for each of the target’s programs. Gotham’s fact-based assessment gave our client the conviction to win the auction with an aggressive bid.

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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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BEAUTY TREATMENT MANUFACTURER
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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Corporate Event Services Provider
Conducting Pre-management Meeting Assessment Of Market Position And Recession Risk

Conducted 2-week early (before management meeting) customer & market due diligence to establish demand for the target’s products, understand the competitive landscape/availability of acquisition candidates, and assess the target’s cyclicality exposure/recession risk. Gotham: conducted 130 interviews with customers and other industry participants; developed a robust, bottom-up view of the competitive landscape; built a market sizing model; established corporate events market dynamics and trends; and modeled the impact of recession on the target’s products. Our client made an early decision to stop pursuing the opportunity as the recession risks outweighed the limited potential to generate outsized returns, thus saving a few weeks of precious deal team time.

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Related Capabilities

 

Operational Due Diligence

 

Post-Merger Integration/ Carve-Out Planning

 

Pragmatic Growth Strategy

 

Sales & Marketing Effectiveness

 

Rapid Operations Improvements

Industry Expertise

 
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Consumer
 
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Food & Beverage
 
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Healthcare
 
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Industrials
 
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Energy
 
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Services

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