Working-capital release
Corporate finance

Securing the release of working capital in the non-ferrous metals industry


Challenge

Our client operates in the non-ferrous metal industry, with operations in many regions. It had recently been purchased by a private-equity investor, and the new owner was keen to release excess working capital.

Approach

Following a high-level analysis of areas of opportunity for working-capital reduction, we worked with senior management to prioritize those opportunities.

 

For these priority areas we undertook detailed analyses, and then worked with the management teams in the individual units to put together action plans to achieve the targeted reductions, gaining commitment to the plans.

Value

The units committed to a combined 32% increase of corporate working capital turnover within 1.5 years, corresponding to 150 MEUR released capital.

When we left the program after a half a year, 75 MEUR had already been released.