REFERENCE

Diagnostic and assessment of a steel pipes producer

Russian Federation
Business activity : Metallurgy - Siderurgy
Area of Excellence : Strategy implementations

Diagnostic and assessment of EMK, the commercial component of the first seamless pipes producter in Russia (VTZ) to prepare capital opening
Evaluation study of EMK on behalf of a foriegn investor

Phase 1 :
- Detailed review, analysis and assessment of the company and of its development prospects (production, marketing, management, finance, human resources)
Phase 2 :
- In-depth due diligence in order to validate financial valuation
- Organisational structure analysis and overall development status
- Review of legal entities within VTZ Corporation including ownership rights, inter-relationships, dependency and management
- Personnel status (organisational structure, number of employees, level of training, salaries and fringes)
- Review of areas of improvement
- Review of major capital expenditures required to meet forecasted production levels
- Analysis of current marketing, sales and disbribution organisations
- Analysis of production, sales cash flow and efficiency trend
- Analysis of fixed assets, description by category with gross and net book value. Valuation based on wester standards, at Russian market value
- Value of intangible assets (copyrignts, licences, ...)
- Identification of markor receivables and liabilities
- Review of commitments and liabilities requiring additional financing or additional liabilities to be booked.
- Review of legal requirements concerning balance sheet items, tax and social issues in light of planned joint venture