Challenge: A global company with expertise in the supply and management of specialty chemicals and gases needed a holistic go-to-market strategy for its gas recovery and reclamation business. In addition, the company was considering an acquisition of a competitor and the client wanted to understand the potential for commercial synergies and whether the acquisition should or should not be integrated within its existing operations.

Assessment: Blue Canyon developed deep insights into the market through in-depth interviews and a quantitative survey with market players. In addition, Blue Canyon built a quantitative model to analyze the potential of the gas recovery and reclamation market. Blue Canyon identified three unique business models, each with its own benefits to providers and buyers of gas. Through a thorough analysis of the primary research, Blue Canyon built a needs-based segmentation of the market, determined the recovery and reclamation opportunity within each of the segments, and how each segment fits with the different business models.

Strategic Solution: Blue Canyon recommended that the client deploy all three business models to maximize its ability to recover and reclaim gases. Unique value propositions for each of the three models were developed and an approach to educate contractors on the best model for each gas removal situation they encountered. Blue Canyon also proposed that the commercial operations of the acquisition target be fully integrated within the existing business to maximize synergies, with the acquisition target brand retired. Blue Canyon advised the client how to manage the integration carefully to avoid sales conflict and protect brand equity.

Result: The client is expected to move forward with the acquisition. In addition, it is expected to follow Blue Canyon’s recommendation on commercial integration and go-to-market strategy. The incremental gross margin gains from the new, integrated commercial strategy is expected to be $10MM-$20MM annually within 5 years.