Electrical/ Electronic Products
Customer & Market Due Diligence Of Electrical Products Manufacturer: Establishing Brand Importance And Recession Risk
Conducted a 2-phase, 5-week customer & market due diligence to establish: (1) the target’s cyclical exposure/recession risk; (2) the target’s competitive positioning/reputation; (3) manufacturers’ rep dynamics; (4) pricing dynamics/trends in the target’s product categories; and (5) e-commerce trends in electrical products market. To this end, Gotham: conducted interviews and surveys with electrical contractors, distributers, and manufacturers’ reps; built an MSA-level electrical product market sizing model; conducted recession risk analysis; and built an electrical product map. Our fact-based brand importance and recession risk assessment allowed our client to successfully close the deal and develop a suitable capital structure to withstand a recession. The business performed within quantified parameters during the COVID-driven demand shock.
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Exit Preparation/Positioning for Electronics Component Supplier: Establishing Niche Market Positioning and Multi-pronged Growth Strategy
Built a solid fact-base of company sales, market position, and competitive dynamics by analyzing 7 years of customer sales/customer data, conducting 170 interviews and 1,900 online surveys of customers/prospects, and building a bottom-up market sizing model. Established company’s position as a niche leader using an original use-based segmentation based on customers’ component needs across the product life cycle. Developed a multi-pronged growth strategy to achieve 14% CAGR growth (vs. 6% overall market growth) by leveraging company’s end-market presence and In Operations segment strength. Gotham also analyzed the impact of pricing on volume and established end-market mix, not pricing, was the driver of recent decreasing flagship catalog brand sales volume. Gotham’s work allowed management to position the company as a niche leader and to begin implementing a credible growth strategy to prepare for a successful eventual exit.
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Creating a Fact-based, Realistic Operations Strategy at Leading Industrial Machinery Manufacturer: Performance Enhancement at IndusTech
Conducted a 2-week diagnostic of current performance as a first step in helping craft and execute an operations strategy. Specific elements of the proposed strategy included: (1) outsourcing non-core activities; (2) rationalizing the vendor based and developing focused supplier partnerships; (3) segmenting operations (equipment vs. consumables) to improve supply chain management; and (4) Moving towards standard and modular system design to greatly simplify inventory and production. Short-term cost savings of $2MM successfully captures and $3+MM longer-term savings capture on track.
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Sourcing Optimiation at Specialty Industrial Equipment Manufacturer: Consolidating and Creating Value-added Relationships with Vendors
Identified opportunity for vendor consolidation for commodity items and created and helped purchasing team execute associated plan for electrical parts processing, resulting in $450K in direct purchasing savings and $1.5MM reduction in componentry inventory. Comparable efforts rolled out to other commodities.
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Post-Merger Integration of South American Industrial Goods Manufacturer: Harvesting Opportunity from Performance, Capability, and Cost Structure Enhancement
Identified specific actionable opportunities (cost, service, and quality) to capitalize on post-merger opportunities. Created plan to capture significant near term and longer term performance, capability, and cost structure enhancements. Management-led execution targeted to result in $2MM in cost, service, and quality savings (on a cost base of $5.5MM).
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Outsourcing Non-core Operations at Specialty Electrical Equipment Manufacturer: New Manufacturing Strategy at ThermaGoods
Identified potential for outsourcing non-core activities, created phased plan, and helped with phase 1 (PC board assembly). Prepared client teams to handle subsequent outsourcing targets. Annual conversion and material cost savings ranging from 6% (transformers) to 20% (stuffed PCBs), with $4.5MM in near-term capital avoidance.
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