Business Appraisal

The Company started business appraisal and valuation activities in 1999 when it received its first serious assignment: business appraisal of Rocket and Space Corporation Energia.

Over the past 10 years, the Company's Business Appraisal Department has developed methods and techniques for business valuation and prepared inhouse business appraisal standards based upon international and Russian standards. It is well known that solid data support is of great importance in business appraisal. It is provided to the Company by Bloomberg, Morningstar/Ibbotson, Shannon Pratt Valuations, SKRIN and other companies.

The Company performs business appraisal and provides consulting services in case of:

mergers and acquisitions;

purchase and sale;

corporate restructuring;

privatization;

share buyback;

additional issue of shares;

out-of-court and court settlement of disputes; and

value-based management.

Solid methodological support and information richness in conjunction with intimate knowledge of sectoral specifics allow the Company's appraisers to be real professionals when involved in different economy sectors.

 

The Department's archive includes over 700 successfully completed projects on business appraisal and valuation in different sectors. The Company has acquired wide experience in

power generating business, power network business and retail power supply;

extractive industries;

oil and gas sectors;

chemical and petrochemical sectors;

agriculture and food products manufacturing;

finance and banking sectors;

aviation and airport business activities; and

telecommunications industry.

 

The Company gives not only highly professional opinion in the form of top-grade, clear and self-explanatory appraisal reports but, first of all, solves a number of problems that the client is facing in one package. This all helps to:

identify the property being appraised;

select the best appraisal approach;

draw up and present appraisal results;

harmonize main suppositions, forecasts and conclusions with the Client's auditors;

take part in out-of-court and court settlement of disputes;

case management during mergers and acquisitions, corporate restructuring and funds raising.

We are highly experienced in valuation of businesses in all federal districts of the Russian Federation and in such countries as South African Republic, Italy, Kazakstan, Belarus, Uzbekistan and Ukraine.

Given below are the biggest projects for the Company:

Appraisal and valuation of power generating and power supply assets in the course of restructuring of RAO UES of Russia. During 2003-2007, the Company specialists made valuation of over 70 assets, including appraisal and valuation of OGK-2, OGK-3, OGK-5, TGK-1, TGK-10, TGK-11, TGK-13, TGK-14, as well as of retail suppliers. The project was implemented in conjunction with Deutsche Bank, ING Bank, Alfa-Bank and IFC Metropol.

Appraisal and valuation of VTB Bank business prior to IPO. The project was implemented in conjunction with Deutsche Bank. Besides, the Company does valuation of the VTB Bank shares from time to time.

Appraisal and valuation of extractive, petrochemical, telecommunications, developer's and other assets of Renova Group of companies.

In 2006, the Company became a member firm of Grant Thornton International. Since that time the Company has been representing in Russia a valuation expertise of the international company and know-how accumulated during more than 20 years in over 100 countries of the world.