Machinery/ Capital Goods
Customer & Market Due Diligence of Filtration Equipment Manufacturer: Assessing Metal Pricing Risks and Opportunities for Adjacent Market Expansion
Conducted 3-week customer & market due diligence to: (1) assess the impact of potential metal price reduction on target’s revenue by developing a robust understanding of metals pricing, mining economics, and historical trends; and (2) establish growth opportunities in adjacent end-markets (chemicals and industrial wastewater). For each end-market, we: established production/treatment processes, filtration technologies, and market dynamics; built market sizing/growth models; and conducted 50+ customer calls to establish/validate filtration requirements. We also built a comprehensive view of different filtration technologies and their usage, as well as competitive dynamics in the filtration equipment industry. Based on our findings, PE client confidently moved forward with the transaction and closed the deal.
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Operational Due Diligence at Global Environmental Machinery Manufacturer: Assessing Product Design and Network Simplification Opportunities
Analyzed product portfolio and design platforms, manufacturing and engineering facilities, and cost structure to establish cost reduction opportunities at a machinery manufacturer with operations distributed over 13 facilities in 8 countries. Due diligence identified $23-39MM (12-21% of total COGS) in cost savings from standardizing/modularizing product line and executing a low-cost manufacturing strategy, simplifying/consolidating the manufacturing and engineering network, and reducing material, labor, and freight costs.
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Operations Diagnostic and Roadmap at Climate Control Product Manufacturer: Establishing End-vision for a Fast-growing, Entrepreneurial Company
Conducted a 3-week operations diagnostic to establish an end-vision for optimizing the clients’s manufacturing, supply chain, and engineering operations. Gotham developed a solid fact base of the client’s operations, including demand patterns, inventory, labor efficiency, product complexity, and cost structure. Working with management, Gotham created an end-vision to transform operations and generate both real bottom line benefits – 600bp EBITDA improvement, 20-30% reduction in inventory, and 30% reduction in the plant footprint – and capability enhancements (faster speed to market, improved quality, etc.) that will allow the client to capture market opportunities and drive future growth. The company’s board wholeheartedly backed this end-vision and asked Gotham to help accelerate capture of these opportunities.
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Customer & Market Due Diligence Of Wastewater Treatment Equipment Manufacturer: Establishing Demand Outlook And Growth Opportunities
Conducted an early Phase I 2-week customer & market due diligence to establish demand outlook and target's growth opportunities. To this end, Gotham: established WWTP equipment needs and treatment technologies; conducted 44 anonymous interviews with municipalities; established capital/O&M spending outlook in the municipal wastewater treatment market; built a comprehensive database of WWTP equipment vendors and products; performed an in-depth WWTP equipment assessment to identify equipment categories for expansion and potential acquisition candidates. Gotham’s assessment of the target’s competitive positioning and growth opportunity in the WWTP equipment market allowed our client to move forward in the auction process with confidence.
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Customer & Market Due Diligence Of NG LDC Equipment Supplier: Establishing Natural Gas Consumption Outlook In Light Of Decarbonization
Conducted 5-week customer & market due diligence to: (1) establish macro trends in NG usage; (2) establish market size and growth trends for NG LDC equipment; and (3) determine the competitive landscape for NG LDC equipment. To this end, Gotham: established historic and projected NG consumption trends by leveraging data available from government agencies; developed a country-level market sizing model; conducted interviews with customers, distributors, and competitors across Europe and North America; and performed extensive primary and secondary research to pin down the decarbonization trend and competitive landscape. Armed with a reliable, fact-based assessment of NG demand outlook, our client moved forward with confidence and closed the transaction.
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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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