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.

Situation: 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.