Our experience – Transactions
In advising financial institutions on transactions we draw on our experience working with government and regulators on public policy, as well as with companies on regulatory strategy, policy and engagement. This experience allows us to advise both on the transaction and on an ongoing basis to ensure investors manage risks and maximise returns.
Ways in which we work on transactions
Based on our knowledge and understanding, we can provide advice and support to potential buyers and sellers of regulated infrastructure assets.
- transaction support – scoping of due diligence to capture key value drivers and economic frameworks, working with and/or challenging the advice of other advisors
- commercial analysis – advice on market structure, competition, growth prospects, technology and costs structures, target performance vs obligations, existing regulatory relationships]
- regulatory due diligence – advice on regime development, regulators’ intentions, regulatory risks and impact assessment
- engagement with regulators and others – advice on dealing with regulators including obtaining regulatory clearance and agreeing licence conditions
In addition we can provide support and independent advice and briefings for recent buyers and owners of these assets
- market analysis – market developments and changing risk profiles; competitor intelligence and comparator performance
- public and regulatory policy – current and prospective government and regulatory policy positions and issues arising for risk management
The independent ongoing briefings can identify new or changing risk profiles to allow investors to respond. We can work with investors and their management teams to manage these risks.
Examples of recent work
- Infrastructure transactions
- We have advised sale or acquisition teams on six recent, significant transactions in the water sector, working closely with other advisors, offering guidance on key issues. We advised a potential purchaser of an independent gas distribution company on the regulatory and economic issues of the transaction and regulatory due diligence for major gas transmission and distribution transactions.
- Investor survey
- On behalf of Water UK we conducted a survey of c40 investors to obtain information on investor views about the water sector and regulatory regime in the run up to the 2009 Price Review. The survey included representatives from equity and infrastructure funds, bondholders, rating agencies and monoline insurers. The results were presented at the Water UK City Conference. We undertook a similar survey on 2005 following the 2004 Price Review.
- Merger policy
- For a consortium of water companies, we investigated the costs and benefits of Ofwat’s methodology for regulating the industry, especially the comparative regulation of water companies.
For the Commercial Radio Companies Association we reported on the impact of the Communications Act on radio mergers.