Identifying Customer Spending Trends and Company Perception of Material Processing Equipment Manufacturer
In an auction situation, conducted customer and market due diligence to identify customer spending trends and perception of the target company for the buyer. Identified potential for a near-term decline in recent sales levels and uncovered customer concerns regarding the target company's customer service and product innovation, leading the buyer to back away from the aggressive pursuit of the company.
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Validating Market Potential of an Add-On Acquisition at Specialty Plastic Container Manufacturer
Conducted 146 customer interviews and market sizing analysis to support an add-on acquisition of residential plastic container manufacturer by a PE-owned $400MM commercial steel container company. Analysis validated market potential and customer perception of the target and since the deal closed, the target has been outperforming projections.
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Validating the Economic Prospects of a Geographic Area for Truck Parts Distributor
Conducted market research and economic assessment of the state of Michigan to validate the geographic market entry strategy of a leading distributor of trucking products evaluating a $30MM add-on acquisition. Effort included a robust profile of the state’s economy, including a 5-year industry-level projection/modeling of state GDP and employment, and a detailed analysis of the state’s business and regulatory environment. Client proceeded with acquisition based on projected near-term growth estimates.
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Assessing Risk and Validating Management’s Growth Projections for Snack Foods Flexible Packaging Converter
Conducted 4-week customer & market due diligence to evaluate: competitive risks from large converters; potentially high CapEx requirements; and target’s reliance on 9 key accounts for almost all of projected growth. Interviewed 50+ key competitors, snack foods customer brand and packaging managers, and printing equipment OEMs; conducted exhaustive research on printing press equipment technologies, snack foods end-market dynamics, and flexible packaging market/competitive dynamics; and analyzed company/market sales data on key customer accounts. Based on our findings, PE client confidently moved forward with the transaction and closed the deal.
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Validating Domestic and International Growth Prospects and Assessing Single Supplier Risks for Medical Packaging Manufacturer
Conducted 2-week market due diligence to validate target’s domestic and international growth opportunities, assess risks associated with its reliance on single source supplier, and identify potential acquisition opportunities. Interviewed packaging industry experts and medical device customers; researched DuPont’s Tyvek manufacturing processes/capacity, competing packaging material technologies, and domestic/international medical device industry demand drivers/trends; and leveraged government and industry data to develop a robust fact base, including “bottom-up” medical packaging size/growth model, International market profiles, and potential adjacent-market acquisition targets. Gotham’s findings enabled our clients to confidently move forward with their Round 2 bid.
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Establishing Demand Cycle Phase for Key Markets and Competitive Positioning of Fluid Power Component Manufacturer
Conducted 3-week customer & market due diligence to validate target’s growth outlook in key end-markets (Agriculture, Construction, Compaction, and Trucking Equipment), establish the demand cycle stage of each end-market, and pin down competitive risks (e.g., Chinese suppliers entering the market). Gotham conducted 75 customer interviews, researched and analyzed equipment component requirements, macro-economic demand drivers, competitive landscape, and target’s customers’ growth outlook, and built “bottom-up” size/growth models for each end-market. Gotham’s due diligence findings allowed the PE client to pursue the transaction with confidence.
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