Industrial Technology

Energy Efficiency Services Market Scan and Acquisition Target Indexing

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Problem:

A leading HVAC systems manufacturer was interested in building its presence in the Energy Efficiency Services (EES) market to generate services revenues and additional product pull-through.  The client believed the EES market offered a strong growth opportunity, and was prepared to pursue one or more acquisitions to enter the market, but leadership needed to validate the size of the U.S. market opportunity. The Client wanted a better understanding of the market landscape in order to determine what type of acquisition target it should pursue. To this end, the client asked Beacon to rapidly validate the EES North America Market size, characterize the competitive landscape, and identify a force-ranked list of potential acquisition targets.

 

Approach:

At project kickoff, Beacon worked closely with the client to clearly define the strategic footprint the client was seeking to acquire, and developed a set of key criteria by which potential acquisition targets could be evaluated. First, Beacon conducted a two-week rapid market scan and opportunity validation. Insights collected during Phase I helped refine the client's understanding of the requirements for success in the market, which allowed Beacon and client to collaboratively refine and weight each variable in the criteria set. In Phase II, Beacon shifted research focus to identifying and profiling companies that fit the client's target footprint. Beacon identified and profiled ~40 potential acquisition targets that met client criteria at high level, scored these companies in an Excel-based indexing tool, then conducted a deeper dive into the top scoring companies.  The final phase of work focused on developing of a set of recommendations for the client based on Beacon's assessment of the potential options. Over these seven weeks, Beacon interviewed over 150 market participants, including financial and industry analysts, regulators, customers, OEMs, and service providers. We engaged with the client's core team on a weekly basis to brief our progress.

 

Results:

Beacon's assessment identified a small top tier of Energy Services Companies (ESCOs) and highlighted a clear favorite. Later that year, the client acted on the study's recommendation and completed a significant acquisition of an Energy Services Company. The acquisition positioned the client to grow its services footprint rapidly in key regions and exceed its North American growth objectives.

Industrial Manufacturing Sales Lead Generation

 

Problem:

A leading industrial automation and equipment manufacturer with a significant footprint in the US automotive market was seeking to diversify its customer base across a wider range of industries and geographies. Beacon's client identified Mexico as a market with significant near-term growth potential, but its limited sales resources were struggling to identify new potential customers. To support more rapid growth in Mexico the client asked Beacon to use its primary research capabilities to identify immediate and near-term sales leads and analyze industry trends in 4 regions of interest. As an output, Beacon's client asked for profiles of 50 businesses, outside of current customers, with an expressed interest in the firm's product.

 

Approach:

Beacon worked with the client to identify the industries of greatest interest based on past or potential demand for client products and solutions.  Beacon leveraged in-house bilingual primary research assets to identify attractive growth industries in each of the 4 regions.  Within the course of 5 weeks, Beacon reached out to over 220 facilities to identify potential customers for the client's products, and understand their requirements and timeline for investment. Beacon focused on capturing the following information from its conversations:

  • Customer's application of the client's equipment
  • Required number of machines based on typical factory throughput
  • Capital equipment budget
  • Budget autonomy/whether the budget was managed locally or abroad
  • The customer's need for maintenance, repair, and consulting services

Beacon engaged with the client's core team on a weekly basis to brief its progress and deliver identified leads in real time.  Weekly updates also provided the client an opportunity to focus or redirect Beacon activities based on information uncovered.

 

Results:

Over the course of 5 weeks Beacon identified 68 sales leads and prioritized leads based on the urgency of requirement and size of opportunity.  Beacon presented the client with a profile of each lead, including the name, phone, and email of the appropriate point of contact within the organization. In addition, Beacon provided the client with a database of all 220 customers contacted in order to reduce redundancy when pursing future leads.  Final project deliverables included a detailed analysis of research results, which force-ranked industries and regions based on the total volume of leads identified and the effort that was required to generate each lead.  Beacon used this analysis to craft recommended next steps for developing a long-term growth strategy in Mexico.  The Beacon team continued to engage with both the client and potential customers beyond project completion to further support near-term sales tactics.

Renewable Energy Adjacent Market Analysis & Opportunity Assessment

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Problem:

A long-time Beacon client identified renewable energy as an attractive adjacency for the company. The client team identified four market segments it believed could provide the best near-term market entry points: Energy Management (Micro-grids/Smart-grids), Solar, Wind,  and Biomass.  Our client asked Beacon to assess the potential synergies between its capabilities and customer need, and investment in each segment and to force-rank addressable opportunities in order of attractiveness. Beacon's objective was to help the client focus scarce business resources on the most attractive entry points to shape and win new customer markets.  Additionally, Beacon identified and profiled specific near-term opportunities for the client to pursue in each market segment.

 

Approach:

Beacon's opportunity assessment included a four-week scan to identify potential federal customers within each segment, followed by a deep-dive into top-tier customers to assess addressable opportunities.

Phase I and II - The client briefed Beacon on the specific functional capabilities it believed it could leverage in micro-grid, biomass, wind, and solar industries.  The client was able to set parameters on the types of opportunities it wanted to pursue in terms of size, scope, and timing, and discuss hypotheses regarding its go-to-market strategy.  Phase I continued with an exhaustive review of all publicly available, open-source information with the collision of opinion from the analyst community, including investment analysts, industry-watchers, journalists, and academics.  Secondary research included a thorough analysis of Stimulus Package funding streams to identify which federal agencies were receiving allocated ARRA dollars.  Beacon then conducted a deeper dive into the most attractive potential federal agency customers to identify and profiled specific client-addressable opportunities.  Over an eight-week engagement Beacon interviewed >170 market participants, including analysts, industry organizations, regulators, customers, and competitors to assess and force-rank potential client opportunities.  All research was conducted in "blind" fashion in order to collect unbiased market feedback and opinion.  Beacon engaged with the client's core team on a weekly basis to brief its progress and provide the client an opportunity to focus or redirect Beacon activities based on information uncovered.

Phase III - Beacon assessed client capabilities and objectives against market characteristics to force- rank the attractiveness and viability of each potential adjacent market opportunity and generated recommended market entry strategies and tactics for the client.

 

Results:

Beacon identified two of the potential market segments as most attractive based on opportunity size, growth potential, competitive landscape, and strong synergies between customer needs and the client's core capabilities.  Additionally, Beacon's assessment concluded that the client would likely need to explore partnership or acquisition to build a reputation as an energy solutions provider or systems integrator.  These findings led to a second project in which Beacon identified and force-ranked potential client partners.

Unconventional Natural Gas Market Assessment

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Problem:

A large regulator technology manufacturer wanted to better understandgrowth in the Unconventional Natural Gas (UNG) market and whether thiswas an addressable adjacency.

Beacon was asked to perform a rapid market sizing and segmentationassessment covering China, Europe, and the U.S.  Within the U.S. marketwe were asked to identify the technologies driving UNG growth, and toidentify potential candidates for acquisition in order to improve ourclient's position and footprint within the UNG market.  However, targetswere limited to regulator technologies that have strong synergies withits current portfolio.

Approach:

The Beacon Group leveraged its primary research and analytic framework capabilities in order to assess 187 component technologies as potential acquisition targets through conducting over 300 conversations with industry participants, academics, and analyst sources. This assessment included a market sizing analysis of the identified attractive technologies which highlighted expected growth over the next five years.

Beacon was able to screen the 187 analyzed components down to five potential acquisition technologies that met requirements based on size and growth, profit margin, component technology, and utilization of unique IP. Within each of the five potential acquisition technologies, Beacon identified and analyzed the leading competitors in order to provide our client with a force ranked list of acquisition targets.

Results:

Through developing a robust understanding of the component technologies required for extracting and processing UNG, Beacon provided actionable recommendations for our client to achieve organic and inorganic growth objectives.  In analyzing the attractive component technologies, Beacon recommended more in-depth analysis of five potential acquisition candidates. We outlined key points of contact and the potential points of interest in positioning our client's discussion. Further, Beacon identified a significant organic growth opportunity and provided actionable recommendations to best position for growth using existing client technology.