Automotive
Customer & Market Due Diligence Of Global Precision Parts Manufacturer: Validating Revenue Sustainability In Markets Under Transformational Changes
Conducted a 2-week customer & market due diligence to validate the sustainability and growth outlook of target’s key product application/programs. To this end, Gotham: built a model to establish impact of automotive electrification on target’s business; analyzed target’s top product applications/ programs to establish growth outlook, program lifecycle, target’s positioning, and margin outlook; conducted anonymous and “warm introduction” interviews with target’s customers; reconciled target’s financial projections against market forecast to determine how much of target’s projected growth was coming from market share gains; and established competitive landscape for both mechanical and electric parts. Gotham’s work established that target’s business was sustainable and gave our client confidence to proceed with its investment.
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Exit Preparation/Positioning for $1B Automotive Parts Distributor: Developing Growth Strategy in the Outsourced Service Market
Built solid fact base of market and competitive dynamics in the outsourced automotive service in order to pin down the growth opportunity in this segment. Analyzed key industry data, interviewed 100+ independent service centers, assessed competitive landscape, and modeled economics to establish market attractiveness and growth potential, including key demand drivers/trends, business synergies/risks, competitive positioning, and size/profitability of future network. Gotham’s exit preparation and positioning allowed the company and its investors to paint a clear picture of the source of the next leg of growth and sell the company at a rich valuation.
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Operational Due Diligence of Global Tier 2 Automotive Components Supplier: Finding and Valuing Cost Reduction Opportunities
Conducted opportunity assessment at Tier 2 Automotive Parts supplier with manufacturing locations in 4 countries. Identified $6-9MM in short-term and $27-37MM in longer-term cost reduction opportunities. Near-term opportunities included improving efficiency of US operations and re-sourcing materials and components from lower cost locations. Longer-term opportunities involved closing a European facility, migrating labor-intensive products from the US to Mexico facility, and building up a Chinese JV to supply all Asia product needs. Identified opportunities far exceeded management plan.
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Pragmatic Growth Strategy for Consumer Electronic Device Provider: Developing Multi-brand Growth Strategy in Preparation of PE Exit
Established feasibility of multi-brand strategy to support a transformative add-on acquisition, created company’s domestic and international growth strategy to position the company for a successful exit in 18-24 months, and developed an actionable strategic plan. Effort included: interviewing 160+ government officials, competitors, consumer/influencers, and other industry participants; researching market, competitive, and regulatory dynamics; building robust state-by-state market size/growth and cannibalization models; and developing multi-brand, Canada entry, and product line expansion strategies. Gotham’s assessment and recommendations allowed the client to move forward with the add-on acquisition and enter Canada, as well as start executing near-term aspects of growth plans to set stage for exit.
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Market Due Diligence for ~$1B Trucking-related Products Distributor: Validating the Economic Attractiveness of Geographic Expansion into 3 States
Conducted Market Due Diligence to evaluate the economic attractiveness of client’s geographic expansion plan for Minnesota, Wisconsin, and North Dakota. For each state: Gotham profiled its economy; identified sector-specific trends and drivers; established state business and regulatory environment; built a robust forecast model of industry-sector-specific GDP and employment; established the relationship between economic activity and the trucking sector; analyzed the historical flow of commodities by transport mode, inbound/outbound destination, and type of product moved; and built model-based forecast of sector-specific trucking activity over the next 5 years. Gotham’s validation of the macro-economic prospects of the 3 states gave the client confidence to pursue its plan.
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Market Due Diligence of Add-on Truck Parts Distributor: Validating the Economic Prospects of a Geographic Area
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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