Customer & Market Due Diligence of Electric Utility Services Company:  Assessing Customer Risk, Margin Sustainability, and Growth Opportunities

Conducted 4-week phased customer & market due diligence to evaluate revenue and margin sustainability risk vis-à-vis the target’s core business and assess geographic expansion opportunities required to create a super-regional player. Developed bottom-up CapEx and Operations & Maintenance spend model of 25 key utilities, including 10-year projections; interviewed 30+ key stakeholders at the target’s top customers and potential customers; conducted detailed analysis of the target’s jobs database and forecast; and conducted extensive primary and secondary research. Based on Gotham’s findings, our PE client significantly revised down their bid and was able to secure the target at a more favorable valuation, with a top-level expansion strategy in-hand.

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Customer & Market Due Diligence of Municipal/Utility Services Company:  Deciphering a Niche Market to Validate Target’s Growth Plan

Conducted 4-week customer and market due diligence to:  (1) establish municipal budget outlook; (2) establish market size and growth outlook for wastewater infrastructure services;  and (3) understand the target’s competitive positioning. The effort included:  124 interviews with municipal and utility officials; in-depth research of environmental regulations; top-down/bottom-up municipal budget analysis; and creation of 3 bottom-up marketing sizing models. Gotham’s comprehensive, fact-based approach verified that the target’s aggressive growth plans were realistic and the target had established a strong reputation with its customers. This allowed our PE client to gain confidence in the target’s ability to meet its revenue plan and move forward with the acquisition.      

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Operational Due Diligence of An Entrepreneurial Specialty Engineering Services Firm:  Instilling Process Discipline Required for Future Growth While Sustaining Performance-oriented Culture 

Conducted operational due diligence to assess the firm’s prospect-to-cash cycle processes and establish a revenue forecasting approach. Our effort included:  building a robust fact base of the company’s cost and operational performance using data from ERP and offline database; mapping and assessing sales & marketing, revenue generation, and people management processes; and visiting/interviewing management across multiple offices.  Gotham provided an explicit top-level operations end-vision and value creation plan bolstering the company’s ability to support growth, giving our client the necessary confidence to successfully complete negotiations. 

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