Challenge: An operating company of a Midwest private equity firm that was a leading supplier in the water and wastewater industry wanted to double its revenue over a three-to-five year time frame. The company engaged Blue Canyon to determine how it could achieve its growth goals by expanding into new markets.

Assessment: Blue Canyon used its proprietary Adjacent Market Assessment approach and worked with the client’s senior leadership team to identify potential adjacent market opportunities, size the opportunities, determine which opportunities offered the greatest strategic fit, and define the critical success factors to enter the highest potential markets.

Strategic Solution: Blue Canyon identified a number of high-potential adjacent market opportunities, including a low-risk, lower-reward option and several high-risk, high-reward options. Blue Canyon also developed a customized entry strategy (build, buy, or partner) and value proposition for each potential new market opportunity.

Results: Blue Canyon identified a number of high-potential adjacent market opportunities totalling $1.2 billion and ultimately recommended that the client pursue two of the new adjacent markets via acquisition. Successful acquisitions would immediately add $80 to $100 million to top line revenue.