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Investment Due Diligence, Steel Wire

Within the terms of the IFI’s Local Private Sector Framework, NAVIGATOR implemented a commercial and technical verification of a major Ukrainian producer of steel wire parts, including low carbon wire, zinc-coated wire, steel bolts, nails and other products.

Some 70% of sales by value are exported, to Greece, France and other countries.

NAVIGATOR implemented an in-depth analysis of operations, including:

  • Market analysis, including customer survey, sales analysis, review of marketing & sales departmental structure and operations, budgets, etc.
  • Technical analysis, including factory planning, MRP, operations, raw materials purchasing and storage, inventory management, occupational health and safety, production finance, etc.
  • Financial analysis, review of 2002-2003 IAS accounts (the latest years available); Business plan review.
  • Review of corporate structure, management, corporate governance, organisational structure and human resources capacity.

The results of the Verification are being used by the IFI to decide on the allocation of a $ 5 million loan.

Services Provided

  • Investment Plan Analysis;
  • Development of Base Case and 2 Scenarios;
  • Main Risks Identified and Recommendations for Loan Structure and Disbursement
  • Technical & Operations Analysis: Factory Lay-out, Equipment & Utilisation Rates; Bottlenecks and Major Issues; Quality Analysis: QMS; Defect Rates;
  • Market Research and Commercial Due Diligence; Sales & Profitability Analysis
  • Raw Materials Analysis: Modelling of Global and European Steel Wire Supply and Demand; Price Sensitivity; Main Volumes & Prices; Security of Supply; PPS; Forecasting
  • Organisational Analysis: HRM; Finance & Accounting; Procurement; IT;
  • Financial Analysis: Operating Profitability; Transfer Pricing Operations; Trade House Operations; Profit/Loss Account; Cash Flow Analysis; Balance Sheet Analysis;