Project Steel I
A regional group active in the supply of infrastructure products sourced internally through its own casting production facility and imports from Asian suppliers.
The client was in the final stages to close an investment to acquire a stake in a Turkish, family-run casting production facility with nearly 40 years in the business.
Complication
The client was in the advanced stages of signing the investment deal, but did not perform a full investment due diligence to assess the attractiveness and risks of the investment opportunity.
Approach
The due diligence covered three main verticals: financial, commercial, and legal. The findings revealed key risks, operational areas of improvements on multiple fronts such as cost structure, marketing and business development, production processes, and cash flow management.
Results
Based on the findings, a fair valuation was established and agreed on. Cornerstone was engaged to launch, implement, and monitor a full operations improvement initiative to improve cost structure, cash flow management, and overall returns.