Case Study
May 26, 2021

Steel Manufacturer and Turnaround Strategy

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“Can Elliott Davis help us: restore sales, improve profitability of operations, restructure the organization, improve the culture, and secure the line of credit?”


Third generation steel manufacturer was facing financial difficulties

  • Sales had been deteriorating over past years
  • Margins were decreasing to negative
  • Bank was threatening to pull line of credit

CEO/Owner had tried several times to turn things around and restore profitability, but had been unsuccessful.

Our Approach

Immediately focused efforts and aligned organization:

(1) Better understanding of financials

  • Developed rolling 13-week cash flow to prioritize decisions

(2) Expense reduction

  • Detailed look at P&L for quick wins to increase cash, particularly SG&A

(3) Operational improvements

  • Setting and managing to proper KPIs
  • Improving profitability of throughput
  • Better scheduling of projects

(4) Revenue growth

  • Setting targets for sales team
  • Focusing on highest-margin opportunities

(5) Securing line of credit

  • Providing turnaround story to banks

Customer Results

Drove improvements throughout the company across major categories:

  • Increased sales by 23%
  • Increased production throughput from 150 tons of steel to handling up to 500 tons
  • Reduced SG&A expenses by $500k

Improvements drove an increase in EBITDA from average of -3.5% for the 2 years prior to Elliott Davis’s involvement to 4.7% for the most recent 6 month period at the conclusion of Elliott Davis’s effort.

We Can Help

For more information on this and other topics, contact a member of our team.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.

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