Machinery/ Capital Goods
Customer & Market Due Diligence of EOL Packaging Equipment Manufacturer: Establishing Equipment Landscape, Competitive Positioning, And Ability To Scale The Platform
Conducted a 3-week customer & market due diligence of an end-of-line (EOL) packaging equipment manufacturer to establish the equipment landscape, the target’s competitive positioning, and the ability to scale the platform. To this end, Gotham: conducted 62 anonymous interviews with customers, OEMs, distributors, and integrators; built a bottom-up database of EOL equipment and OEMs by format, automation level, and end-market; analyzed automation trends; and built market models for both equipment and aftermarket segments. Gotham provided a clear, fact-based view of the target’s competitive positioning and whitespace opportunities, enabling our client to develop confidence in the platform’s ability to scale and pursue the target aggressively.
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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 Due Diligence of Oil & Gas Aftermarket Parts Supplier: Determining Purchasing Processes, Competitive Positioning, and Market Trends
Conducted focused customer due diligence to gain critical customer insights from major drillers regarding purchasing processes, competitive positioning, and market trends. Gotham conducted 31 anonymous interviews with personnel at rig sites, maintenance yards, and corporate headquarters of on-shore and off-shore drilling companies to: 1) identify selection criteria and determine whether purchasing decisions are made at the drill site or at corporate; 2) establish the target’s strengths and weaknesses vis-à-vis key competitors; and 3) understand market risks and opportunities in light of low oil prices and technological changes. Gotham’s deep customer insights and first-hand customer account of market trends allowed our PE client to submit a well-informed bid.
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Customer & Market Due Diligence of Leading Road Maintenance Equipment Supplier: Assessing Revenue/Growth Risk Pre-LOI
Focused Pre-LOI due diligence effort on establishing state DOT/municipal budget dynamics (the target’s greatest dependency), the target’s competitive positioning, and growth trends of the target’s road maintenance equipment market. Gotham: 1) compiled 10 years of state DOT budget details for 30 key states; 2) conducted ~50 interviews with state DOTs (and some municipalities); 3) built a state DOT equipment fleet profile, including fleet size, replacement cycle, age distribution, and manufacturer by equipment type; and 4) established the competitive landscape of the road maintenance equipment market. Because Gotham’s fact-based assessment painted a less optimistic picture than management’s projections, our client decided not to pursue the acquisition.
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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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