Results by Industry:
Results by Capability:
Results
Our high-level, top-down strategic analysis combined with our analytical, bottom-up approach enables a meaningful, fact-based discourse and provides a pragmatic platform for implementing our recommendations, which translate into real results.
In our due diligence assignments, we identify hidden EBITDA and working capital opportunities, create a clear picture of operations, market realities and growth opportunities, and customer perception of the target, and discover potential issues with the investment, enabling our clients to win auctions, avoid “bad deals”, and create proactive plans for value creation post-acquisition. The following exemplify the due diligence results we deliver:
- Enabled a mega private equity firm win a hotly contested auction of a $700MM Direct Marketing Company
Identified $25+MM in inventory and $15+MM in cost reduction opportunities beyond management projections. Post-auction-win, the management team asked Gotham to help them capture opportunities uncovered during due diligence
- Helped a large private equity client win an auction of a $120MM Energy Services Provider
Conducted customer interviews and market research to validate the business model and the market potential of the target
- Enabled a private equity firm to renegotiate the purchase price down by 20+% for a $40MM E-Commerce Retailer with a 35+% annual growth rate
Deciphered the outsourced logistics cost structure while the target was in the midst of transitioning to a larger warehouse and renegotiating associated contract terms
- Prevented a $400MM industrial goods portfolio company of a leading middle market private equity firm from being overly aggressive with a $80MM add-on acquisition
Established that the customer spending in the target’s end-market was heading into a down-cycle over the next 12-18 months and the target had declining customer reputation for innovation and customer service
In our portfolio company assignments, we quickly dissect the company’s business and operations and generate a focused, actionable plan that is owned by the management team. Often, we continue on to assist the management team in implementing the plan – results are typically visible within 4 to 8 weeks. We deliver high quality results in a very expeditious and affordable manner, with top-line growth accelerating to 10+% CAGR, cost reductions of 15+%, and inventory reductions of 25+%, as exemplified below:
- Cut COGS by 19% ($50+MM) at a multi-national $500MM Industrial Company
Developed comprehensive strategy for capturing cost savings through global network configuration, overhead reduction, automation, Mexico relocation, product strategy, fulfillment strategy, purchasing initiatives, outsourcing, and measurement systems
- Reduced sourcing cost by over $10MM and inventory by over $20MM for a $700MM Direct Marketing Company
Developed new sourcing function and processes, crafted a strategic sourcing approach (including business case for an Asia Sourcing Office), re-sourced 15,000+ ($100+MM spend) China-sourced items, and created robust inventory management processes
- Captured 15% EBITDA improvement in 10 weeks for a $50MM Consumer Goods Company which avoided potential equity infusion
Identified $1-2MM in cost reduction opportunities and help capture $900K in immediate labor and outbound freight opportunities in a recently acquired portfolio company that fell short on EBITDA target and violated debt covenants
- Developed a pragmatic growth strategy to take a $25MM, barely profitable power electronics business to $100MM, 20% EBITDA business within 4 years
Developed product strategy based on market segmentation, competitive assessment, and product capability analysis, and created product development, sourcing, branding, marketing, and channel strategies