Transportation
Customer & Market Due Diligence Of Specialty Chemicals Logistics Service Provider: Establishing ISO Tank Container Growth And International Expansion Opportunities
Conducted a 2-phase due diligence of a leading provider of ISO tank container services to establish: specialty chemicals import/export dynamics and trends; ISO container growth outlook and penetration level; understanding of target’s competitive positioning; and international expansion opportunities. To this end, Gotham: built a bottom-up market sizing model to establish ISO container penetration using 600 million-row PIERS database of all U.S. import/export bills of lading; conducted 93 anonymous interviews with NVOCCs, chemical manufacturers, and ISO tank manufacturers and lessors; developed a port-by-port view of competitors in the U.S. and Europe; identified and analyzed all U.S. chemical plant investments; and conducted a deep-dive into a key account to assess potential risks. Gotham’s comprehensive, data-driven assessment of the market trends, the target’s competitive positioning, and growth outlook provided our client with facts to prevail in the hotly contested auction and gain exclusivity.
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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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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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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 For MIddle-Market Private Equity Fund: Identifying Target Specialized Manufacturing Industries For Investment
Supported fund raising effort of a middle-market PE firm by validating the firm’s ingoing hypothesis that the investment boom in emerging economies would drive growth for specialized manufactured products, with the next 24 months presenting a significant opportunity to invest in its 4-5 related platform companies. Gotham: reviewed preferred profile of target acquisitions with the investment committee; established investment trends in 25 key sectors; identified and short-listed industries benefitting from these investments; and identified key products and companies within short-listed industries. Our client successfully closed its new fund within a few months, exceeding its original target.
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