Natural Resources
Customer & Market Due Diligence of Leading HSE Services Company: Understanding Market Dynamics/Size as Key Input to Round 2 Bid Decision
Conducted customer interviews and market research to validate company’s business model of providing outsourced services to the energy industry. Effort included interviewing (unsolicited) 84 current and potential customers, researching 5 product families and 7 industry sectors to establish service requirements, and building bottom-up market sizing model for this early stage outsourcing market. PE client ($9+B under management) purchased the company and able to increase the top-line by 50% within the first year.
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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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Rental Operations Improvements for Heavy Equipment Rental Company: Diagnosing Performance Deficiencies at Data-rich But Information-poor Branch-based Underperforming Business to Identify EBITDA Improvement Opportunities/Plan for Their Capture
Identified $6.4MM in quick-win EBITDA improvement opportunity in rental, parts, and services businesses by analyzing the company’s revenue drivers, cost structure, and equipment utilization. Working with management, developed a detailed 6-month implementation plan to enable rapid capture of operational improvement opportunities and to establish long-term strategic initiatives to drive top- and bottom-line growth. Management is successfully implementing value creation plan and, within 3 months, has already captured $3MM in EBITDA improvements (vs. same quarter in previous year).
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Proactive Investment Strategy In Engineering Services: Establishing A Robust Market And Competitive Fact Base For Evaluating Targets
Conducted a 4-week proactive investment strategy effort to provide a large PE client with a dependable fact base for assessing potential acquisition targets in the highly localized and fragmented engineering services market. To this end, Gotham: built a granular market sizing model and a dashboard tool to allow the investment team to visualize served addressable market size and growth rates based on a target’s end-market and geographic presence; established competitive intensity by market segment; shortlisted the 3 most promising targets from a list of 12 engineering services firms tracked by the client; and conducted ~80 interviews with engineering services buyers in geographies served by the shortlisted targets to understand the firms’ positioning. Gotham provided our client a robust fact base and tool for evaluating targets and provided the deal team a jump start in its investment process.
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