Due diligence analysis for a European energy network
Sia Partners UK worked with a major international infrastructure investor to make an informed decision on whether to bid for an asset. Find out more about how we helped them and what we did...
A large international infrastructure investor approached Sia Partners UK to assist with the acquisition of a European regulated electricity and gas network. The task involved detailed regulatory, operational and technical analysis of the business. The project also involved assessment of the local political environment and assistance with stakeholder management with regulators, legislators and management within the company.
The company to be acquired was going through a process of governance reform. At the same time a new regulatory regime was being implemented by a new regulator. Sia Partners UK was required to forecast the likely implications of these changes on the business and the impact on asset value. We also benchmarked the operational and technical performance of the business against other utilities and estimated the potential efficiency gains to be achieved following acquisition.
The detailed independent assessment undertaken by Sia Partners UK allowed the investor to take the view that it did not want to proceed with the transaction. It was considered that the governance risks were too high and the uncertainty could not justify the valuation of the asset. This saved the client further transaction costs. The Sia Partners UK approach is to provide independent and impartial analysis to allow its clients to take an informed view. Our clients value this approach because we are not motivated by success fees or other incentives. We provide the detailed regulatory, operational and technical analysis to allow the client to make the correct decision.