Case Study: American Securities achieves better private equity bidding decisions with CARTO

Geospatial Analysis for Investment Decision Making in Private Equity

American Securities, a private equity firm, used CARTO in a competitive bidding process to evaluate a retail chain’s expansion potential. The challenge was determining whether the business could keep building profitable stores outside its core market and within existing regions, using only limited deal information under tight time pressure.

With CARTO, American Securities combined store locations with hundreds of spatial variables, including demographics, competitive presence, and transaction data, then analyzed them with isochrone mapping and CART models. CARTO helped reveal that weaker performance was tied more to expansion strategy and store characteristics than brand issues, showing that stores performed best near highways with truck traffic and that roughly 160 census tracts could support new high-revenue stores, giving American Securities a stronger bidding edge.

American Securities