Case Study: Masonry Services & Products
Engagement Overview
Fulcrum Consulting Group was engaged by a buyout client considering an investment in a vertically integrated masonry services and products provider active in residential and commercial segments.
Client
Private Equity Buyout
Engagement
Market Diligence
Industry
Specialty Construction Contracting
Target Company
Masonry Products & Services
Key Diligence Issues
In order to inform deal team understanding of business risks and opportunities, the tight timeframe (two weeks) project scope included a market assessment and voice of the customer study with the following areas of focus:
Market Assessment: Observe regional construction trends in both residential and commercial markets – specifically what is expected in the next few years and what may cause these expectations to change, the current state of renovation and repair activity, and which materials are gaining or losing share relative to others.
Company Assessment: Collect and analyze purchaser and market feedback to understand the impact of the COVID-19 pandemic on demand and characterize company performance and positioning.
Competitive Assessment: Identify and profile the main competitors in the masonry space and which are gaining or losing market share.
Approach
Fulcrum only had two weeks to complete the engagement and quickly completed over 26 blind interviews with decision makers in the industry who have experience with the target company or competitors. Primary and desktop research was tailored to capture supply and demand conditions in four specific MSA’s.
Despite the short timeline, Fulcrum’s ability to ramp up primary research efforts allowed for a substantive midway update focused on regional demand trends for masonry products to help support the client’s internal decision process as well as to manage target company and seller dynamics.
Throughout the engagement Fulcrum maintained a blind interview approach with both customers and non-customers.
Impact
Fulcrum developed an understanding of current trends in the masonry industry with regards to masonry demand on an absolute basis, as well as in relation to other building materials.
The research findings detailed purchaser decision criteria and identified key competitors in the fragmented industry. Direct market feedback tested the impact of the pandemic as well as the implications for future demand. The research informed client understanding of the impact of supply chain disruptions not only on overall construction project volume in MSAs of interest, but on demand for masonry products and services specifically.
In grappling with the ongoing pandemic related uncertainty, decision makers need to ground investment and strategic decisions in data. Get in touch to learn how Fulcrum Consulting Group can support your team.