Step Advisory, in conjunction with Clarity, provided buy-side Transaction Advisory Services to Fabchem Mining for the acquisition of Vula Drilling, a hard rock drill bit supplier to the mining industry.
To complete a successful investment, Fabchem Mining required the assistance of an experienced advisory team to partner with them along the transaction journey. The need was to assess the strategic rationale of the opportunity at hand and to negotiate an attractive structure and price for the potential investment. The Fabchem Mining team also required assistance to execute the transaction effectively and efficiently.
In partnership with Clarity, the Step team provided full-scale buy-side transaction services to Fabchem Mining. As the transaction had already been originated, the Step team assisted in the initial negotiations which resulted in the agreement of the high-level structuring and pricing expressed in the EOI to be signed by the sellers. The Step team then assisted in completing the financial due diligence and financial modelling for the proposed transaction. Throughout the process, Step and Clarity remained a strategic soundboard to the directors of Fabchem as they contemplated and interrogated the strategic rationale, risks, and opportunities inherent in the investment decision. Once the decision to proceed with the transaction was approved, Step and Clarity negotiated a favourable structure and facilitated the drafting and execution of the associated legal agreements.
The process, led by Step and Clarity, resulted in a successful transaction whereby Fabchem Mining has acquired 100% of Vula Drilling through a structure that reduced the risk associated with the transaction and created a base for Fabchem to create enduring value through the venture.