Case Study: Commercial Roofing Services
Engagement Overview
Fulcrum Consulting Group was engaged by a buyout client considering an investment in regional provider of commercial roofing services.
Client
Private Equity Buyout
Engagement
Market Diligence
Industry
Commercial Roofing Services
Target Company
Regional Commercial Roofer
Key Diligence Issues
In order to inform deal team understanding of business risks and opportunities, Fulcrum conducted a voice of the customer study with the following areas of focus:
Company Assessment: Collect and analyze customer feedback to evaluate key performance indicators (e.g., NPS), customer relationships, and the impact of the COVID-19 pandemic on roof contract demand. Determine how many commercial properties were serviced by the target company, and how they selected a roof services provider.
Customer Decision Structures: Identify the key decision makers involved in commercial re-roofing projects. Determine whether the decision structures change between client types, characteristics of the role, opportunities and risk of roofing consultants in the acquisition of new business.
Competitive Assessment: Profile the players within the commercial roofing space and determine which competitor companies are active in the target’s footprint.
Approach
Fulcrum conducted interviews with top customers of the target company to get insight into the target company’s service record, noted strengths and weaknesses, and areas for improvement. Customer intent to continue utilizing the target company’s roofing services was also determined, as well as the decision-making process of the customer, including RFP structures, the number of companies considered and when to commence the RFP bidding process.
In addition to voice of the customer work, Fulcrum conducted extensive desktop research and analysis on the role of consultants in the regional commercial roofing landscape, regional commercial roofing trends, the roofing RFP process, and the competitive landscape.
Fulcrum communicated with our client frequently to discuss findings and adjust focus. Fulcrum delivered a formal substantive update midway through the project and a final report within deal timeframe constraints.
Impact
A key consideration for the client was understanding the relationship between roofing contractors, commercial decision makers for roof contracts, and roof consultants who advise those decision makers in the target company’s market.
Another key consideration for the client was the percentage of work that comes to a roofing contractor from service work on previous jobs. The findings showed the target company’s positioning relative to its competitors for new projects and which decision criteria mattered most, as well as highlighted a strategy for maximizing future opportunities for additional re-roofing jobs.
Making strategic decisions in B2B environments begins with harnessing the power of primary market research to understand purchaser decision behavior. Fulcrum engagements reveal key decision structures, risks, and opportunities within an existing customer base. Get in touch to learn how Fulcrum Consulting Group can support your team.