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Packaging & Printing

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Snack Foods Flexible Packaging Converter
Customer & Market Due Diligence of Snack Foods Flexible Packaging Converter:  Assessing Risk and Validating Management’s Growth Projections in Snack Foods Packaging Market

Conducted 4-week customer & market due diligence to evaluate:  competitive risks from large converters; potentially high CapEx requirements; and target’s reliance on 9 key accounts for almost all of projected growth. Interviewed 50+ key competitors, snack foods customer brand and packaging managers, and printing equipment OEMs; conducted exhaustive research on printing press equipment technologies, snack foods end-market dynamics, and flexible packaging market/competitive dynamics; and analyzed company/market sales data on key customer accounts. Based on our findings, PE client confidently moved forward with the transaction and closed the deal. 

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Medical Packaging Manufacturer
Market Due Diligence of Medical Packaging Manufacturer:  Validating Domestic and International Growth Prospects and Assessing Single Supplier Risks

Conducted 2-week market due diligence to validate target’s domestic and international growth opportunities, assess risks associated with its reliance on single source supplier, and identify potential acquisition opportunities. Interviewed packaging industry experts and medical device customers; researched DuPont’s Tyvek manufacturing processes/capacity, competing packaging material technologies, and domestic/international medical device industry demand drivers/trends; and leveraged government and industry data to develop a robust fact base, including “bottom-up” medical packaging size/growth model, International market profiles, and potential adjacent-market acquisition targets. Gotham’s findings enabled our clients to confidently move forward with their Round 2 bid.

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Consumer Goods Packaging Manufacturer
Network Optimization at Large Consumer Goods Packaging Manufacturer: Determining Plant Closures and New Asset Placement

Formulated plant closure strategy and determined placement for the new printing assets by analyzing capacity, loading, customer logistics, and risks for each affected plant. Developed cost saving and one time cost scenarios. Developed business cases for two plant closures identifying $6.3MM in annual savings. Both closures were announced within weeks of the board's decision after the business cases were presented.

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Direct Marketing Services Company
Operations Diagnostic of Direct Marketing Services Company:  Establishing “One Company” Organization and Operations to Realize Cost Synergies 

Conducted a 5-week operations diagnostic of a recently acquired portfolio company to identify cost reduction opportunities and establish organizational and operations end-visions. Gotham undertook an extensive analytic effort to reconcile and align data from 3 separate, independently operating systems corresponding to each business unit and create in-depth profiles of purchasing spend and labor efficiency. We also identified opportunities to improve salesforce effectiveness, including salesforce restructuring and a new compensation system. Finally, working with management, Gotham developed a “One Company” organizational structure to eliminate disconnect and facilitate savings opportunity capture within and among the 3 business units. Following the diagnostic, management launched efforts to capture these opportunities, which were expected to improve the company’s EBITDA margins by 6+ percentage points.

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Flexible Packaging and Labeling Converter
Customer & Market Due Diligence of Flexible Packaging and Labeling Converter:  Quickly Evaluating Customer Relationship Strength, Competitive Positioning and Commodity Price Risk

Conducted rapid, focused customer & market due diligence to:  1) evaluate market dynamics, leveraging our proprietary knowledge base to establish market size, segmentation, and trends by packaging/label type, end-market, and material type; 2) determine strength of customer relationships by interviewing major customers after addressing management’s sensitivities regarding customer contact; 3) establish competitive landscape by leveraging our proprietary database of flexible packaging and labeling companies and by interviewing additional small direct, local competitors; and 4) evaluate target’s exposure to plastic resin price volatility by reviewing target’s vendor/customer agreements and analyzing purchasing/sales data to demonstrate the effectiveness of informal price adjustment mechanisms. Gotham’s rapid assessment of market dynamics, customer relationships, the competitive landscape, and commodity price risk gave our client the confidence to provide the necessary capital to complete the acquisition.    

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Customized Consumer Goods Manufacturer
Operational Due Diligence of Customized Consumer Products Company:  Validating Management's Operations Plan and Identifying Additional Savings

Identified $35-45MM in cost reduction opportunities, 2-3x management’s savings plan, giving our client an edge to win the auction. Despite very limited access to the target’s management, plants, and data due to the nature of the auction, Gotham was able to leverage dataroom information, a plant visit, and our relevant experience to build a solid fact base of the target’s cost structure – including a detailed 4-year line-item-level view of the operational cost structure and an analysis of 2,000-employee workforce linking each individual to the specific cost line in the cost structure – and to both validate and expand savings opportunities via a comprehensive outsourcing/consolidation model and an analysis of sales, marketing, customer service, and G&A costs.    

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