Machinery/ Capital Goods
Customer & Market Due Diligence Of Industrial Filtration Equipment Manufacturer: Establishing Demand Outlook In Light Of Automotive Powertrain Electrification
Conducted a 2-week customer & market due diligence to: understand the type and replacement frequency of filtration equipment; establish the impact of electrification on demand for filtration equipment; and pin down the competitive landscape. To this end, Gotham: conducted interviews with decision makers at the Big Three North American Auto Manufacturers, foreign transplants, competitors, and industry participants; determined plant-level electrification plans for major automotive OEMs; established filtration equipment needs by mapping filtration processes under different scenarios; and built a database of industrial filtration equipment vendors and equipment. Gotham’s assessment allowed our client to gain clarity on the impact of electrification on filtration equipment demand and confirmed the target’s leading competitive positioning, allowing our client to price the deal accordingly.
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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 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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Customer & Market Due Diligence of Fluid Power Component Manufacturer: Establishing Demand Cycle Phase for Key Markets and Competitive Positioning
Conducted 3-week customer & market due diligence to validate target’s growth outlook in key end-markets (Agriculture, Construction, Compaction, and Trucking Equipment), establish the demand cycle stage of each end-market, and pin down competitive risks (e.g., Chinese suppliers entering the market). Gotham conducted 75 customer interviews, researched and analyzed equipment component requirements, macro-economic demand drivers, competitive landscape, and target’s customers’ growth outlook, and built “bottom-up” size/growth models for each end-market. Gotham’s due diligence findings allowed the PE client to pursue the transaction with confidence.
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Customer & Market Due Diligence of Fluid Power Equipment Company: Assessing Adjacent Market Growth Opportunities in Several Technically-complex Niches
Conducted customer & market due diligence to validate adjacent market growth opportunities, including offshore oil & gas, forestry, marine, and civil infrastructure and other end-markets under consideration. Interviewed 150+ competitors, customers, prime contractors, and other key value chain participants, researched complex technical requirements, and leveraged government and industry data to develop a robust fact base, including size/growth models for each end-market, geographic gap analysis, and profiles of key competitors/potential acquisition targets. Based on Gotham’s findings and recommended expansion strategy, PE client closed the deal and is pursuing an acquisition to fill a key geographic gap.
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