We served as the lead regulatory and market due diligence advisor to an investment management firm in a $7.4 billion acquisition of a regulated natural gas and electric utility company. Our role in the transaction included detailed due diligence on all regulatory and market assumptions underlying the valuation model; validation of the rates, cost of service and customer demand projections; qualitative and quantitative review of the key financial assumptions; and evaluation of power and fuels market risks.
We met with senior seller company executives, presented its results to equity and debt investors, and responded to key business and regulatory issues associated with the transaction. We further assisted the client in communications with its senior management, investment committee and lenders on the valuation and assessment of regulatory and market related business factors, and provided a written due diligence report.
