The metalworking industry faces the challenge of remaining competitive in a complex market environment and sustainably increasing its margins. Due to international trade limitations through export duties and quotas, companies are exposed to fluctuating raw material volumes and prices. China’s hunger for raw materials also continues to burden markets. On top of this comes a persistent shortage of skilled workers. Not least of all, existing overcapacities have exposed the industry to an elevated degree of competitive intensity. Management of working capital remains high on the agenda for many companies. Despite pressure on margins, investment in the future remains paramount. Strategic partnerships also enable the accomplishment of more cost-intensive R&D projects for achieving technological advantage. We observe that the most dynamic companies especially grow through innovation partnerships with their customers. The market also offers starting points: companies can distinguish themselves through targeted Customer Relationship Management and market customer-specific additional benefits.
Why Warth & Klein Grant Thornton?
As a Mittelstand company, we are intimately familiar with the structures and processes of our Mittelstand clients. Due to our comprehensive knowledge of the metal sector acquired over many years, we can offer our clients auditing and consulting services that are targeted toward industry-specific requirements. In addition to “classical” auditing and tax consulting services, we can also offer industry players constructive solutions for even the most special issues. Integration within the global network of Grant Thornton enables us to support international companies while upholding uniformly high quality standards. Irrespective of the type and scope of assignment, we guarantee comprehensive partner commitment and competent on-site counterparts.
- Financial statement audits with industry-specific auditing approaches according to German, international and US accounting and audit standards with added value through identification of improvement potentials and best practice solutions
- Purchase contracts often contain auditing provisos for verifying adherence to contractual clauses, such as the purchase acceptance of predetermined quotas from suppliers, which we handle for you within the framework of contract audits
- M&A activities: we advise our clients within the context of purchase and sales negotiations, identify possible targets and/or potential purchase interests, support the search for capital investors for innovation projects, conduct company valuations and financial and tax due diligences and, after conclusion of the transaction, offer post-closing audits to verify adherence to contractual clauses
- Business economic advisory: together with you, we identify cost optimization opportunities and support their implementation
- Compliance for the Mittelstand: we advise you on introducing internal controlling systems, test the conformance and effectiveness of available controls and conduct business partner assessments so that when dealing with new business partners you will be able to estimate any possibly related risks in advance
- Tax consulting: we know the tax issues affecting your industry. Among other things, our service offering includes VAT-related advisory for foreign transactions, transfer pricing analysis and documentation, advice on restructurings and corporate succession procedures as well as guidance in connection with external fiscal audits.
For more information, please contact WP/StB Mr. Torsten J. Schrimpf, head of our Metals industry group.
Mining: raw and building materials are the basis for industry and innovation
The essential challenges of the raw material industry lie in approving new exploration of raw material deposits and the periodic approval of ongoing mining excavations. Because raw material extraction always involves an intervention in nature, the mostly Mittelstand companies constituting the construction and raw materials industry face mounting environmental regulations in the approval process. Likewise, conservation of resources through recycling is receiving greater attention. High investment sums, long planning horizons, long approval procedures, energy-intensive production processes and limited sales opportunities confined to ongoing infrastructure projects within geographic proximity to the extraction operations require complex and entrepreneurial decision-making. Companies wishing to survive in this environment must show a high capacity for innovation, flexibility in adjusting to legal approval guidelines and an ability to improve their efficiency.
Why Warth & Klein Grant Thornton?
Warth & Klein Grant Thornton has many years of experience in the raw and building material sectors and has a comprehensive understanding for industrial, trade and tax-related as well as regulatory developments. We combine this industry knowledge with our professional expertise and our services in auditing, tax consulting and economics. In doing so, we offer the flexibility and fast reaction times of a Mittelstand company combined with access to a high-performance international professional network. We provide our clients with competent contact counterparts and steadfast, enduring teams combined with high efficiency and problem-solving competency. We find a fast, constructive and innovative solution for every issue.
- Financial statement auditing according to German and international standards
- Company valuations for various occasions
- Transactional consulting and support
- Audits according to special legal regulations (e.g. EEG [renewable energy law], restructuring reports)
- Process optimization of the internal controlling system
- Compliance und risk management, customized for the Mittelstand
- Tax consulting, especially for restructuring projects and corporate succession
- Analysis of IT environment and IT data security