Energy

M&A Support and Financing

The transformation of the energy sector worldwide through privatization and deregulation is continuing to spur acquisitions and mergers, as well as direct investment, within countries and across national borders. NERA has worked with some of the largest energy companies in North America, Europe, Latin America and Asia to help them to understand both the upside potential and the downside risks associated with mergers and acquisitions.

We have provided a variety of services, including identifying potentially attractive markets and companies within those markets; valuing a proposed transaction; analyzing bidding, contracting, pricing, derivatives, incentive regulation and other alternatives for increasing revenues, decreasing risk or both; responding to potential challenges based on market power, regulatory policy or other public interest concerns; and assisting with negotiations and implementation.

Each of these services may comprise a number of different elements. Our work may address a series of questions such as:

•  What regulatory changes might be forthcoming?
• What are the prospects for reasonable returns in regulated activities?
• Are regulators likely to require divestiture of some assets to address market concentration concerns?
• What is the market for the assets being acquired, and what are their likely cash flows?
• What current or prospective environmental constraints could affect operations and asset values?
• What, if any, further changes in industry structure and in rules governing competitive activities are likely?