Healthy/ "Good for You" Foods
Customer & Market Due Diligence Of Better-For-You Sweet Treats Brand: Establishing Brand Positioning and Category Expansion Opportunity
Conducted a 3-week customer & market due diligence to establish the health and growth profile of the target’s current product categories and validate the target’s product category expansion opportunities. To this end, Gotham: analyzed retailer-/SKU-level NielsenIQ data; conducted a survey of over 2,500 consumers; and conducted interviews with key food retailers and distributors. Gotham’s in-depth analysis of the low/no-sugar sweet snacks market, the target’s brand positioning, and the target’s growth opportunities provided our client with the robust, reliable fact base needed to compete aggressively in this hotly-contested auction.
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Customer & Market And Operational Due Diligence Of Leading Processor Of Freeze-Dried Fruits: Rapid Assessment Of Technology, Competitive, Customer Concentration, And Operational Risks
Provided clarity on risks (technology, competitive, customer concentration, and operational), and growth opportunities ahead of bid. Through interviews with 30+ competitors (domestic and import), distributors, equipment suppliers, academic experts, and customers, and extensive secondary research, Gotham established: the applications and advantages/disadvantages of freeze-drying technology; the target’s positioning vs. domestic and international freeze-drying processors in South America, China and Europe; and the stability/growth of its top customers. Gotham’s analysis revealed while the market was growing and the target was well-positioned and poised for growth, it could potentially face increased competitive intensity and margin pressure. Our client accounted for all these risks and tempered growth projections in its model.
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Manufacturing Operatons Diagnostic at Private Label Nutraceutical Company: Avoiding Need for Capital Investment via Throughput Improvement and Cost Reduction
Identified significant manufacturing capacity available through a variety of key throughput levers, including: reduced number and shortened length of changeovers; reduced frequency and duration of downtime; and increased speed in bottleneck equipment. In addition, identified 35% reduction in direct labor cost. Following our implementation plan, company increased EBITDA by $7MM by the end of the fiscal year and the PE firm successfully sold the company.
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Operational Due Diligence of Regional Family-owned Coffee Roaster and Distributor: Identifying Consolidation Opportunities and Creating Roadmap for Professionalizing Operations to Support Future Growth
Conducted a 3-week operational due diligence to establish a robust fact base of cost and operational performance in a data-poor situation, identify consolidation opportunities, and provide a fact-based, actionable plan for post-acquisition value creation, including: delivery and service route optimization to eliminate 30-40% of current routes; brewing equipment CapEx reduction through better deployment of used equipment; warehouse consolidation; sourcing efficiencies; SKU complexity management and inventory reduction; and professionalization of roasting and supply chain operations. Gotham’s findings enabled the client to close the transaction with confidence; the company started capturing identified opportunities within a few weeks of the deal closure.
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Manufacturing Operations Improvements at Foodservice/Co-pack Juice Company: Network-wide Operating System to Turn Around Performance
Turned around plant performance by implementing basic plant operating system (downtime, waste, and scheduling). $600K in run rate cost savings captured by the end of the 6-week engagement, with tools and processes in place to capture the rest. Building on the initial success, rolled out the network-wide standard operating procedures to the other 2 plants during an 8-week Phase II effort with additional savings of $2-2.5MM expected. Company generating record EBITDA (60+% improvement in EBITDA) and the PE firm decided to market the company for an exit.
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Manufacturing Operations Improvements at Healthy Baked Goods Company: Implementing Measurement/Tracking/Reporting To Build Cost Discipline And Capture Material And Labor Cost Savings
Identified $1.1-1.6MM in cost reduction opportunities in materials, labor, and freight. Launched a fact-based cost-reduction program including ingredient measurement and feedback system, a system for fixed labor standards based on rated line speeds, goal boards to manage productivity targets/performance, and a performance measurement and reporting system.
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