Valuation of Mining Services Division for Call Option

Valuation of a public company's mining services division pursuant to a call-option agreement.

A mining company had the option to purchase a mining-services division of another company and called on us to value the business.  The seller commissioned a separate valuation report as required under the call-option agreement.  A third valuation was sought to help adjudicate the difference between our and the other expert’s valuations.  The third valuation was closer to our valuation conclusion and ultimately used as the basis of the transaction price.

Our work in this matter included identifying, collecting and analyzing the relevant financial documents, reviewing and analyzing forecasts for the mining services division, and conducting regular calls with the opposing expert and representatives of the mining services division being valued to ensure that our respective valuations were based on the same set of facts and forecasts.