Engineering/ Technical Services
Proactive Investment Strategy In Engineering Services: Establishing A Robust Market And Competitive Fact Base For Evaluating Targets
Conducted a 4-week proactive investment strategy effort to provide a large PE client with a dependable fact base for assessing potential acquisition targets in the highly localized and fragmented engineering services market. To this end, Gotham: built a granular market sizing model and a dashboard tool to allow the investment team to visualize served addressable market size and growth rates based on a target’s end-market and geographic presence; established competitive intensity by market segment; shortlisted the 3 most promising targets from a list of 12 engineering services firms tracked by the client; and conducted ~80 interviews with engineering services buyers in geographies served by the shortlisted targets to understand the firms’ positioning. Gotham provided our client a robust fact base and tool for evaluating targets and provided the deal team a jump start in its investment process.
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Customer & Market Due Diligence Of Engineering Consulting Firm: Validating Market Opportunity To Create A Super-regional Player
Conducted a 4-week customer & market due diligence of an engineering consulting firm to confirm that the target was a solid platform with acquisition targets available to create a super-regional player. To this end, Gotham: conducted 100+ interviews and 100+ online surveys with engineering services customers; built a bottom-up market sizing model using Dodge construction activity data to establish market growth trends and market share by end-market and state; backtested the target’s sales mix to determine potential impact of a recession on the target’s business; and analyzed over 1,475 engineering services firms to identify 110 potential acquisition targets. Gotham’s comprehensive assessment provided our client with the facts and comfort level necessary to compete aggressively in a hotly-contested auction.
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Operations Improvements at Multi-disciplinary Engineering Services Firm: Improving Profitability and Revenue Performance
Conducted a 6-week operations assessment to turn around the company’s margin performance and position it for a successful exit in 2-3 years’ time. Analyzed historical project and employee utilization performance; developed target staffing leverage model; and created target business development model to improve efficiency of business development effort while driving profitable revenue growth. Our detailed assessment gave our client a solid understanding and roadmap of the levers to achieve the target margin performance (5-7% points growth); client requested Gotham to provide ongoing support through quarterly performance audits.
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Customer & Market Due Diligence Of Technical Services Provider: Establishing Competitive Positioning And Demand Outlook
Conducted a 3-week customer & market due diligence to establish the refinery market outlook, the target’s competitive positioning, and the target's growth opportunities. To this end, Gotham: conducted 38 anonymous interviews with refineries, petrochemical companies, contractors/fabricators, and other industry participants; analyzed refined product demand, refinery production, capacity utilization, plant retirements and consolidation, COVID-related shutdowns, refined product transportation network, and the impact of environmental regulations; profiled the target’s customer/project mix and project profitability; validated the target’s near-term project pipeline; researched heat-treating technical specialization and ASME Code requirements; established the competitive landscape; developed bottom-up heat-treating market sizing model; and determined end-market (LNG Export, Chemical, and Natural Gas Power Plant), geographic, and service line expansion opportunities. Gotham's detailed, fact-based approach provided our client a clear understanding of the refinery market outlook, confirmed the target’s competitive positioning as the leading player in the heat-treating services market, and helped our client develop confidence in the near-term revenue outlook.
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Customer & Market Due Diligence of Municipal/Utility Services Company: Deciphering a Niche Market to Validate Target’s Growth Plan
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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Operational Due Diligence of Testing Services Provider: Identifying Consolidation Synergies from and Operational Improvement Opportunities in an Add-On Acquisition
Conducted a 4-week operational due diligence to: 1) identify and quantify facility consolidation and other synergies; 2) determine cost additions and operations improvement opportunities; and 3) establish current asset and labor utilization. Gotham worked hand-in-hand with our client to build a comprehensive and reliable cost and capacity fact base, conducted detailed tours of all the facilities, assessed several site consolidation options, and benchmarked operational metrics across the 2 companies. Gotham’s due diligence findings allowed our client to confidently proceed with the transaction; client is already capturing synergies identified during the due diligence.
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