CRS Capstone Partners Provides a Private Steel Manufacturer with Turnaround Management

Case Study

Industry: Steel Fabrication

Challenge: The Company was in a liquidity crisis and in need of a turnaround plan. Amounts owed to vendors were severely past due and key suppliers had stopped supplying the Company, which disrupted the production cycle.

Solution: Hired as financial advisor to serve as the interim CFO and develop a turnaround plan. CRS developed all of the tools to drive efficiencies into the cash-conversion cycle. The conversion cycle was key in managing creditor agreements and payment plans which provided the additional liquidity to keep materials flowing and vendors paid. CRS provided alternative financing solutions and brought in a factoring provider, further enhancing liquidity.

Result: The cash “runway” was extended from what was weeks to over one year based on the turnaround plan developed and implemented by CRS. This allowed the private equity sponsor to run a sales process that successfully divested the Company’s assets in an orderly fashion.