Due diligence is a practice advocated by many, but market advisors and consultants must be very thorough as is demanded in a complex transaction.
A clear appreciation of market conditions and trends, demand drivers, and the competitive and regulatory environment in which assets and enterprises operate are essential elements of any valuation process.
Future market and regulatory conditions can never be forecast with certainty. It is therefore important to be able to quantify the potential impact on future revenues.
How ACIL Allen can help you
We advise clients on market and regulatory issues in the context of feasibility studies, capital raisings, mergers, acquisitions and prospectus development.
We help vendors, purchasers, financiers and insurers of major infrastructure assets understand how market and regulatory issues impact on asset valuations and other key business decisions. The results of our analysis are often presented to due diligence committees, and provided in the form of independent expert reports for inclusion in due diligence documentation and prospectuses.
Our analytical and modelling skills enable us to provide robust quantitative estimates of the impacts of market and regulatory risk. We often use risk-based decision tools such as real options frameworks to advise clients on risk management strategies and opportunities.
Much of our experience in these roles relates to major infrastructure assets, supporting feasibility assessments, equity raisings, sale and acquisition processes and funding of infrastructure assets, including:
- natural gas and electricity transmission and distribution
- power stations
As independent market and regulatory advisors we fulfil a number of important roles:
- review and validation of assumptions about markets and demand for services
- preparation and assessment of demand forecasts and growth drivers
- competitor analysis
- examination of regulatory precedents and trends
- market and regulatory risk assessment.