Investment FAQs

WHY DID FGM START FMI?

Through FMI, we are not merely influencing change; we are instigating it. We invest capital, share our proven risk management platform, and enhance supply chain efficiencies. The FGM ecosystem of divisions we have cultivated enables us to utilize our financial and steel market expertise, empowering our member companies to focus on their core competency: manufacturing excellence.

Before we launched FMI to grow OEMs, we were already creating these efficiencies of scale at FGM. Our deep understanding at FGM isn’t theoretical; it’s grounded in our firsthand experience of the effectiveness of our approach. This experience, when contrasted with the rigid norms of an entrenched industry, showcases our achievement, as we are the only company bridging the gap between physical and financial realms. Our expertise surpasses hedging; it encompasses a wide array of business acumen—market strategy, manufacturing efficiency, steel industry-specific economic research, quality systems implementation, working capital management, financial planning and analysis, and capital markets. Alongside the talents of our HR, IT and Legal teams, we have created a comprehensive and successful platform.

The inception of FMI was driven by our desire to catalyze industry transformation. Since our establishment in 2010, we have spearheaded the transformation of traditional steel procurement processes. Despite the industry’s slow pace of change, there has been a gradual acceptance of risk management, which we have championed. However, our ambition to revolutionize the market demanded a more proactive approach. Thus, we decided to embody the principles we advocate by becoming an essential partner to steel-consuming OEMs.

WHAT TYPES OF COMPANIES ARE OF MOST INTEREST FOR A CAPITAL INVESTMENT?

We’re seeking to partner with steel-consuming OEMs that have a stable market standing, are looking for a competitive edge and better long-term financial performance. We lean towards organizations with engineering and construction applications with a high percentage of steel in their finished products, typically input of more than 1k of steel per month. FGM values manufacturers with a vision for the future, those who are cognizant of the detrimental effects of unmanaged price risks. Our investments are directed at organizations that are willing to cede control of their steel buying to the combined experts at FMS and FCM, much like organizations use outside professionals in law or accounting. We welcome discussions with companies not actively seeking sale or recapitalization, as well as those needing reorganization or a carve-out strategic planning.

WHY SHOULD MY COMPANY CONSIDER AN INVESTMENT FROM FMI INSTEAD OF A PRIVATE EQUITY FIRM?

At FMI, you’re not just receiving capital, you’re gaining a partner vested in sustainable relationships. In fact, the majority of our long-standing leadership team were successful operators of businesses that have themselves joined FGM via M&A activities. We’ve been a partner to manufacturing companies for decades, working collaboratively on their shop floors. This leads to an understanding of not only supply chains and risk management but also manufacturing processes focused on eliminating waste and creating efficiencies. All of which makes us uniquely qualified to unlock value in your business that no one but FMI can identify and quantify.

The FGM approach to business growth through strategic acquisition has been a cornerstone of our success, as we’ve meticulously cultivated a portfolio of companies that together form an unrivaled collective. Our culture thrives on embracing challenges with patience and foresight, always supported by data and analysis. We know how to spot opportunity and grow value, and we take a long-term view of capturing and reinvesting those gains. Most of all, the results from our own risk management and the returns we have generated are nothing short of astonishing.

ARE YOU OPEN TO OUTSIDE CAPITAL TO JOIN YOUR ECOSYSTEM?

Yes, we welcome conversations with others who believe there is untapped opportunity to capture share of wallet and enterprise value. We encourage you to contact Brad Pemberton at bpemberton@flackglobalmetals.com or call FGM’s office at 480-575-3221 for further discussions.