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Fabricated Metal Products

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GLOBAL PRECISION PARTS MANUFACTURER
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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Metal Products Holding Company
Operational Due Diligence of Fabricated Metal Products Holding Company: Properly Valuing Diverse Manufacturing Operations

Analyzed operations and cost structure of 5 independent companies engaged in forging, casting, and stamping operations. Deciphered cost structure, reviewed manufacturing operations, and analyzed material spend. Identified $7-15MM of labor, overhead, and material cost reduction opportunities in the largest of the companies, which was engaged in steel casting. Identified another $6-9MM in scheduling, labor, efficiency, and consolidation opportunities for the remaining companies. After delayed acquisition, now helping to capture opportunities.

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Steel Castings Company
Material Cost Reduction at Large Steel Castings Manufacturer: Material Purchasing and Usage Reduction

Identified $3.3-5.5MM in material cost reduction opportunities in both purchasing and material usage, including: clawing back commodity price increases; consolidating vendor base and re-sourcing key commodities; measuring and reducing material usage; and tracking and controlling non-centralized discretionary purchases. Developed tools to allow robust, ongoing reporting and analysis capabilities for both purchasing and usage performance and created the bid packages for top 6 commodities to launch the re-sourcing process. Within weeks, client team reduced usage by 3%, generating $1.2MM in savings, and completed several re-sourcing initiatives.

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OPE PARTS MANUFACTURER
Customer & Market Due Diligence Of OPE Parts Manufacturer: Establishing Complex Market Dynamics And Target’s Competitive Positioning

Conducted 3-week customer & market due diligence to establish: market dynamics and outlook for the OPE parts market; the target’s reputation/competitive positioning with OEMs and retailers; and the target’s growth opportunities in the retail, professional, and E-Commerce channels. Gotham:  conducted 7 “warm introduction” and 41 anonymous customer interviews; conducted 2,075 online consumer panel surveys with OPE users; and built a market sizing model. With the clarity and insights we provided, the client became comfortable with target’s market position and growth opportunity and successfully closed the add-on acquisition.

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Retail Damage Prevention Product Manufacturer
Customer & Market Due Diligence of Retail Damage Prevention Product Manufacturer: Establishing Growth Outlook and Competitive Positioning

Conducted a 3-week customer & market due diligence to: (1) establish growth outlook of the target’s market and products; (2) establish target’s competitive positioning; and (3) validate target’s pipeline and growth projections. The effort included: 90+ interviews with customers and influencers; extensive market research to establish retail channel trends, strategy, retailer location dynamics, and risk; profile of major competitors’ product portfolio and positioning; and bottom-up market sizing model by product segment, spend type, and channel. Gotham’s comprehensive, fact-based assessment indicated that despite the increasingly challenging brick and mortar retail environment, the asset damage prevention product market continues to be robust. Furthermore, the target has strong positions by product and channel, enhanced by strong customer relationships and long-term contracts. As a result, our client felt confident to move forward and closed the transaction successfully.

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Precision Medical Device Component Manufacturer
Delivery Performance Turnaround at Precision Medical Device Component Manufacturer: Rapid Backlog Reduction and Sustainable Delivery System

Rapidly reduced backlog and created a robust delivery system. Backlog reduction effort included rolling out prioritized schedule, developing and implementing debottlenecking strategies, creating a cross-functional team resolving issues that were stopping scheduled jobs. Robust delivery system initiatives included: 1) turning on the planning and scheduling functionality of the ERP/cleaning up system data and parameters, developing SOPs for data entry, training the workforce on the SOP; 2) improving the accuracy of time estimates by revamping engineering process; and 3) reducing quality defects by 20%. Within 3 months, on-time performance improved from 59% to 93% while lead time shrunk from 13-16 weeks to 10 weeks, with backlog reduced in half.

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