The Company, one of the worlds largest steel producers, was defending a proceeding commenced by the Attorney General of Canada associated with its acquisition of Stelco, Inc. An ABS professional wrote an expert report in defense of this proceeding.
An expert report was prepared which: (i) determined expected economic and industry conditions at the acquisition date, (ii) opined on actions taken in response to adverse conditions relative to these expectations, and (iii) compared the industries post-acquisition performance to other industry cycles.
The Worthington Steel Company
This steel processing company with revenue in excess of $1.0 billion required a better understanding of customer and product profitability as well as the profitability effects of changing volume, price and product mix. An ABS professional led a team tasked with this analysis.
Developed a comprehensive activity based cost model to enable the identification of both cost reduction and optimization of cost, price and volume trade-offs. This analysis led to numerous improvements in profitability.
The Sapir Organization, LLC
Sapir, a large private equity fund, required assistance in determining whether to buy and modernize a shuttered integrated steel facility with an estimated capital cost of $0.8 billion. An ABS professional led the feasibility, return and implementation plan analysis.
A feasibility study was performed which included industry research/forecasts, customer surveys, best practice benchmarks, and capital cost estimates leading to an investment recommendation and detailed implementation plans. The 2008 financial crisis terminated the plan.
M.A. Hanna Company (acquired by PolyOne)
This public chemical company experienced an unexpected decline in profit within its color concentrate division. This in turn required a major profit improvement with this division. An ABS professional led a team tasked with analyzing this divisions strategy and operations to improve profitability.
Performed a comprehensive business analysis which included operations simulation, an assessment of processing technology, and review of production planning methods. This analysis led to the identification of major cost reductions including potential facility consolidation.
Owens Illinois, Inc.
Large public glass container manufacturer required an analysis of all financial systems and controls in order to improve the quality and timeliness of financial information. An ABS professional led a team charged with this effort.
Performed a complete financial process analysis enabling a shorter financial closing process at a lower cost. This was achieved primarily through enhancements to existing business systems and changes in certain business practices.
The Company, a specialty metals processor, was experiencing a decline in profits. Ownership had suspicions of wrong doing by a senior level manager, but could not pinpoint the issue.
An ABS professional led a forensic accounting team in reviewing general ledger transactions and found the CFO of the Company had infiltrated the payroll system and set up fictitious employees and manipulated payroll entries. Additional analysis of other accounts found fraudulent expense reports. The CFO was ultimately convicted of criminal actions against the company.
Steel Industry Supplier
A major supplier to the steel industry suffered a large receivable loss. An ABS professional was engaged to develop a strategy to ensure the company would return to profitability.
A strategy was developed focusing on the negotiation with creditors enabling a return to profitability. The final step of the strategy took the company through a bankruptcy, allowing for a high return to trade creditors through a 363 sale of the company. The sale involved a partnering between the incumbent and new investors.