Assessing Customer Risk, Margin Sustainability, and Growth Opportunities of Electric Utility Services Company
Conducted 4-week phased customer & market due diligence to evaluate revenue and margin sustainability risk vis-à-vis the target’s core business and assess geographic expansion opportunities required to create a super-regional player. Developed bottom-up CapEx and Operations & Maintenance spend model of 25 key utilities, including 10-year projections; interviewed 30+ key stakeholders at the target’s top customers and potential customers; conducted detailed analysis of the target’s jobs database and forecast; and conducted extensive primary and secondary research. Based on Gotham’s findings, our PE client significantly revised down their bid and was able to secure the target at a more favorable valuation, with a top-level expansion strategy in-hand.
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Establishing Market Dynamics And Growth Outlook
Conducted a 3-week customer & market due diligence to establish the competitive differentiation and validate the growth opportunities of the target. To this end, Gotham: created a robust market sizing model establishing the current inventory of wells as well as a drilling forecast segmented by end-market; conducted interviews with municipal and C&I water well customers and government agencies; established the competitive landscape and market share of key players; and uncovered attractive geographic, service line, and end-market expansion opportunities. Gotham’s assessment armed our client with a solid understanding of market dynamics/growth outlook and the target’s reputation/competitive positioning, allowing our client to pursue the transaction with confidence.
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Establishing Natural Gas Consumption Outlook In Light Of Decarbonization
Conducted 5-week customer & market due diligence to: (1) establish macro trends in NG usage; (2) establish market size and growth trends for NG LDC equipment; and (3) determine the competitive landscape for NG LDC equipment. To this end, Gotham: established historic and projected NG consumption trends by leveraging data available from government agencies; developed a country-level market sizing model; conducted interviews with customers, distributors, and competitors across Europe and North America; and performed extensive primary and secondary research to pin down the decarbonization trend and competitive landscape. Armed with a reliable, fact-based assessment of NG demand outlook, our client moved forward with confidence and closed the transaction.
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Establishing Impact Of Mining Market Cyclicality And Competitive Differentiation
Conducted a 3-week customer & market due diligence to establish the target’s competitive positioning and recessionary risk in the mining end-market. To this end, Gotham: conducted 52 interviews with and 171 online surveys of mining executives, fleet business directors, and engineers; established macro mining tends; developed a mining truck fact pack; built a market sizing model to project mining truck demand; created a mining recession model; built a mining parts provider competitive landscape; and assessed the small crawler crane market and competitive dynamics. Gotham provided our client with a clear view on the target’s competitive positioning and recessionary risk in the mining end-market, commodity prices, and macro mining trends, and growth potential in the construction end-market, which allowed our client to make informed decisions during the bidding process.
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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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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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