Test & Measurement
Customer & Market Due Diligence of Test & Measurement Equipment Distributor: Assessing Channel Risks and Validating Growth Potential in Niche Specialty Distribution Market
Conducted OEM, Customer & Market Due Diligence to confirm continued industry shift to indirect channel, establish target’s competitive positioning, analyze rental business attractiveness, and explore adjacent market expansion opportunities. Created market sizing model to validate market size and growth prospects, conducted 50+ customer and OEM interviews, modeled financial impact of indirect channel on OEMs, and performed extensive research. Gotham’s 2-phasse due diligence effort enabled our client to win the auction and successfully complete the acquisition of target.
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Customer & Market Due Diligence Of Electrical Test & Measurement Equipment Company: Establishing Competitive Positioning And Growth Opportunity
Conducted 2-phased customer & market due diligence to establish the competitive positioning and growth opportunity of an entrepreneurial designer and manufacturer of highly technical electrical test & measurement equipment for electrical safety, precision voltage measurement, and power analysis. To support an early go/no-go decision, conducted a rapid 1-week assessment to establish market size and the target’s competitive positioning. Initial effort included: 30 anonymous interviews with customers, distributors, and competitors; extensive secondary research to establish market and competitive dynamics; and management discussions. After our client decided to move forward, Gotham: conducted 68 additional interviews with equipment users; built market size/growth models for each of the 3 product categories; and determined sales & marketing effort/approaches required for the target to capture growth opportunity. Our client was excited about the opportunity to professionalize and grow the business and closed the transaction successfully.
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Operational Due Diligence of Testing Services Provider: Rapidly Validating Margin Improvement Opportunities and Assessing Capacity/CapEx Risk
Conducted 2-week operational due diligence to validate margin improvement opportunities and assess capacity/CapEx risk. Gotham visited 7 facilities and conducted full-day operations review with management to understand operations management approach/processes and visions/plans moving forward. To fill gaps in this data poor situation, we performed various in-depth analyses – recasting labor cost structure, analyzing job-level data to understand profitability, building a bottom-up labor utilization and fixed cost model to project margins with revenue growth, etc. Gotham’s due diligence work enabled our client to move forward with confidence and successfully acquire target in a proprietary deal.
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Operational Due Diligence of Testing Services Provider: Identifying Consolidation Synergies from and Operational Improvement Opportunities in an Add-On Acquisition
Conducted a 4-week operational due diligence to: 1) identify and quantify facility consolidation and other synergies; 2) determine cost additions and operations improvement opportunities; and 3) establish current asset and labor utilization. Gotham worked hand-in-hand with our client to build a comprehensive and reliable cost and capacity fact base, conducted detailed tours of all the facilities, assessed several site consolidation options, and benchmarked operational metrics across the 2 companies. Gotham’s due diligence findings allowed our client to confidently proceed with the transaction; client is already capturing synergies identified during the due diligence.
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