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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Determining Purchasing Processes, Competitive Positioning, and Market Trends of Oil & Gas Aftermarket Parts Supplier
Conducted focused customer due diligence to gain critical customer insights from major drillers regarding purchasing processes, competitive positioning, and market trends. Gotham conducted 31 anonymous interviews with personnel at rig sites, maintenance yards, and corporate headquarters of on-shore and off-shore drilling companies to: 1) identify selection criteria and determine whether purchasing decisions are made at the drill site or at corporate; 2) establish the target’s strengths and weaknesses vis-à-vis key competitors; and 3) understand market risks and opportunities in light of low oil prices and technological changes. Gotham’s deep customer insights and first-hand customer account of market trends allowed our PE client to submit a well-informed bid.
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Quickly Evaluating Customer Relationship Strength, Competitive Positioning and Commodity Price Risk of Flexible Packaging and Labeling Converter
Conducted rapid, focused customer & market due diligence to: 1) evaluate market dynamics, leveraging our proprietary knowledge base to establish market size, segmentation, and trends by packaging/label type, end-market, and material type; 2) determine strength of customer relationships by interviewing major customers after addressing management’s sensitivities regarding customer contact; 3) establish competitive landscape by leveraging our proprietary database of flexible packaging and labeling companies and by interviewing additional small direct, local competitors; and 4) evaluate target’s exposure to plastic resin price volatility by reviewing target’s vendor/customer agreements and analyzing purchasing/sales data to demonstrate the effectiveness of informal price adjustment mechanisms. Gotham’s rapid assessment of market dynamics, customer relationships, the competitive landscape, and commodity price risk gave our client the confidence to provide the necessary capital to complete the acquisition.
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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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