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.
Deciphering CTV And Programmatic Advertising Ecosystems And Growth Outlook
Conducted a 3-week customer & market due diligence to establish the growth outlook of CTV and programmatic display advertising and the target’s competitive positioning in the CTV advertising ecosystem. To this end, Gotham: conducted 35 interviews with and 280+ online surveys of publishers, advertisers, advertising agencies, and AdTech platforms; established CTV and programmatic display market dynamics and digital ad spend trends; and built a comprehensive database of AdTech platforms. Gotham provided our client a clear view on the inner workings of the CTV and programmatic display ad ecosystems and the target’s positioning within the CTV ecosystem. This clarity along with a fact-based outlook for digital marketing spend allowed our client to gain confidence in the target’s potential and move forward to close the deal.
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Understanding Risk Posed By National Haulers
Conducted a 3-week customer & market due diligence of a managed waste solutions provider to establish the target's positioning/risk vs. national waste haulers; its competitive differentiation; its margin stability and recession risk; and the overall managed waste solutions market size and growth expectations. To this end, Gotham: conducted 33 interviews with and 73 online surveys of customers; built a detailed end-market level sizing model; determined the managed waste solutions competitive landscape; analyzed distances between landfills and the target’s customers; built a recession impact model; and established customer and hauler pricing mechanisms. Gotham provided a detailed view on the competitive dynamics and risks posed by the national waste haulers and the advantages of managed waste solutions providers, helping build client confidence in pursuing the target aggressively.
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Establishing Supply/Demand Imbalance And Growth Outlook
Conducted a 3-week customer & market due diligence to: (1) establish the adolescent/young adult mental health treatment addressable market size; and (2) validate the target’s outpatient and short-term residential program growth opportunities. To this end, Gotham: conducted interviews with and surveys of psychiatrists, educational consultants, residential programs, payors, and insurance advocates; built a supply/demand model to quantify the gap between current and unconstrained demand for these services; established insurance dynamics pertaining to behavioral health coverage; and built a database of residential treatment programs. Armed with the clarity on supply/demand imbalances in outpatient and short-term residential care treatment provided by Gotham, our client gained confidence in the target’s aggressive growth plan and moved forward to successfully close the deal.
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Validating Market Growth Outlook And Cost Savings From Consolidating Operations To Regional Hubs For Global Pressurized Dispensing Packaging Components Manufacturer
Conducted 2-week due diligence to validate sell-side estimates of market growth outlook and operational savings from consolidating 18 manufacturing facilities in 15 countries to 4 regional production hubs. Gotham undertook a comprehensive assessment of each operational initiative, including feasibility, changes to original plan, further opportunities, capacity dynamics, labor savings, material cost savings, overhead cost reduction, freight cost impact, CapEx, and one-time costs. Gotham estimated ~$15MM in total savings, 50% above the sell-side report and determined $12-13MM in CapEx/one-time costs. For market growth, Gotham conducted extensive research and interviews with industry participants to understand key product and packaging trends and built a bottom-up market model, projecting a 5.5% CAGR market growth (~2% lower than sell-side estimate). Our client pursued the target with a revised bid taking into account the lower market growth and the higher operational savings opportunity.
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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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Establishing Competitive Positioning And Growth Opportunity of Electrical Test & Measurement Equipment Company
Conducted 2-phased customer & market due diligence to establish the competitive positioning and growth opportunity of an entrepreneurial designer and manufacturer of highly technical electrical test & measurement equipment for electrical safety, precision voltage measurement, and power analysis. To support an early go/no-go decision, conducted a rapid 1-week assessment to establish market size and the target’s competitive positioning. Initial effort included: 30 anonymous interviews with customers, distributors, and competitors; extensive secondary research to establish market and competitive dynamics; and management discussions. After our client decided to move forward, Gotham: conducted 68 additional interviews with equipment users; built market size/growth models for each of the 3 product categories; and determined sales & marketing effort/approaches required for the target to capture growth opportunity. Our client was excited about the opportunity to professionalize and grow the business and closed the transaction successfully.
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