Assessing Customer Risk, Margin Sustainability, and Growth Opportunities of Electric Utility Services Company
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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Establishing Market Dynamics And Growth Outlook
Conducted a 3-week customer & market due diligence to establish the competitive differentiation and validate the growth opportunities of the target. To this end, Gotham: created a robust market sizing model establishing the current inventory of wells as well as a drilling forecast segmented by end-market; conducted interviews with municipal and C&I water well customers and government agencies; established the competitive landscape and market share of key players; and uncovered attractive geographic, service line, and end-market expansion opportunities. Gotham’s assessment armed our client with a solid understanding of market dynamics/growth outlook and the target’s reputation/competitive positioning, allowing our client to pursue the transaction with confidence.
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Establishing Natural Gas Consumption Outlook In Light Of Decarbonization
Conducted 5-week customer & market due diligence to: (1) establish macro trends in NG usage; (2) establish market size and growth trends for NG LDC equipment; and (3) determine the competitive landscape for NG LDC equipment. To this end, Gotham: established historic and projected NG consumption trends by leveraging data available from government agencies; developed a country-level market sizing model; conducted interviews with customers, distributors, and competitors across Europe and North America; and performed extensive primary and secondary research to pin down the decarbonization trend and competitive landscape. Armed with a reliable, fact-based assessment of NG demand outlook, our client moved forward with confidence and closed the transaction.
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Establishing Market Outlook, Channel Dynamics, And Commercial Synergies
Conducted a 3-week customer & market due diligence to assess the market outlook, competitive positioning, and commercial synergy opportunities for a BAS peripheral electronic components manufacturer being evaluated as an add-on to a lighting controls platform. To this end, Gotham: conducted: 62 interviews and 176 surveys with BAS contractors and distributors; built a bottom-up market sizing model; assessed BAS system architecture and technology obsolescence risk; analyzed channel dynamics across OEMs, distributors, and contractors; and evaluated commercial synergy opportunities across BAS, electrical, HVAC, and MRO channels. Gotham provided the client with a clear view of the target's market positioning, brand strength, and growth outlook while addressing concerns around technology obsolescence and synergy viability. Gotham's analysis gave the client the clarity and confidence needed to place a strong bid for the target.
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Establishing Market Opportunity For New Technology
Conducted a 3-week customer & market due diligence of a corn milling equipment manufacturer to provide clarity on the market opportunity for a new technology. Gotham: conducted 30 anonymous interviews with plant managers, feed merchandisers, nutritionists, and other industry participants to understand ethanol plant buying behavior and positioning of enhanced byproducts in animal feed end-markets; and established ethanol plant capacity and production over time as well as prevalence of various feed sources. By confirming a significant market opportunity for this new technology, Gotham was able to give the client confidence to move forward with their pursuit of the target.
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Establishing Addressable Market And Growth Outlook In An Undefined Market
Conducted 1-week customer & market due diligence to establish the addressable market size, growth trends, and competitive landscape for flow control safety equipment in natural gas distribution systems. Gotham: conducted 78 interviews and 44 online surveys with natural gas utilities; built a market sizing model extrapolating interview/survey data; and developed a robust technical profile of natural gas local distribution system configurations and flow control equipment. Armed with valuable clarity and detail in an otherwise information-poor industry, our client was able to complete the add-on acquisition with confidence.
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