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Steel Company Valuation Service

steel company valuation service

Determination of Business Value

Valuation determines the economic value of a business asset. Valuation work is typically used to support clients who wish either to purchase or sell a business or as a part of insurance or due diligence investigations.

The MCI valuation services team has a great deal of specialist experience, particularly in the valuation of steel industry assets, and draws on the wider range of expertise within the organisation. Consideration is given to:

  • The scope of the business or assets to be valued
  • The valuation methodology to be adopted (discounted cash flow - DCF, asset or earnings-based valuations using EBITDA or other multiples, with data from precedent transactions)
  • Client-specific assumptions - for example is a fire sale involved?
  • The location, age, condition and completeness of the relevant assets
  • A general assessment of the technology and its appropriateness for the intended use
  • Maintenance records, where available.

Where applicable, adjustments are made for:

  • Costs to complete works
  • Renovation and restart costs
  • The sustainability of the asset in question
  • Relocation costs, if relevant
  • Business liabilities.

Asset valuation assignments are typically conducted in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation Standards. The MCI process for conducting valuations consolidates information gathered from technical records and site visits as well as a proprietary 'in-house' database to derive a baseline value of the assets under consideration. Adjustments are then made taking into account the age and condition of the equipment.

Depending on the nature of the assignment, the scope of work may be expanded to include a review (from a technical viewpoint) of:

  • Raw materials supply agreements
  • Market off-take agreements
  • Equipment supply and Engineering, Procurement and Construction (EPC) contracts
  • Utility supply contracts
  • Operation and management contracts
  • Human resources issues.

Reports follow a structured format and typically include an introduction to the assignment, an outline of the valuation approach or approaches to be adopted, a description of the metal processing assets, details of the assumptions made, value calculations and a valuation statement. Written valuation reports are issued either as a stand-alone technical document or as part of a portfolio together with legal, commercial and financial documents.

Recent experience of MCI's experts includes involvement in the following valuations.

Valuation DateCountryAssets Involved
Sep 2006UkraineIntegrated flat product plant
Jun 2009NigeriaMelt shop and bar rolling mill
May 2012AngolaMelt shop and rebar mill
Jul 2013 LatviaEAF melt shop / bar mills
Dec 2013United Arab EmiratesWelded tube manufacturing
May 2014KenyaCompact strip mill / HRC plant
Jun 2014EgyptBrownfield welded tube assets
Jan 2015KuwaitLarge diameter pipe works
Sep 2015TurkeyIntegrated flat product / long products
May 2017EgyptNew meltshop and rebar mini-mill
Jun 2017EthiopiaGreenfield integrated steelworks
Sep 2017GeorgiaEAF / caster / rebar plant
Jan 2019PolandSeamless tube mill
Jul 2019Saudi ArabiaHollow structural sections plant
May 2020PakistanDirect reduced iron plant (DRI)
Jul 2020NigeriaMine, beneficiation and pellet plant, & DRI
Jan 2021EgyptDRI, EAF, rolling mills
Feb 2021QatarMiddle East billet mill, rod rolling mill
Note: Valuations typically based on discounted cash flow / historic multiples / market comparators.

Management consulting
services provided by
MCI consultants - company valuations

For further information, please contact
For a no-obligation discussion you may also call us on +44 775 149 0885. Thank you.


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