Transactions

Helping you capture deal value

As we’ve done with many clients, PwC’s cross-discipline Capital Projects & Infrastructure transactions team can help you structure and execute an infrastructure deal to increase your returns on the asset throughout the project lifecycle.

Transactions insight

Today, investors seeking a countercyclical investment option are increasingly turning to infrastructure funds. They’re also responding to the government's receptivity to private participation, and to swelling demand for new infrastructure in the US and emerging markets.

Money is available. According to one recent report, infrastructure funds worldwide currently hold over USD250 billion for infrastructure projects.

Long term, private equity firms, banks and other financial institutions will look to capitalize on the demand. But infrastructure deals carry many inherent risks. Careful due diligence and structuring are needed to align deal dynamics with objectives.

Complex questions face executives leading infrastructure projects. For example:

  • Does your organization have an integrated approach to accountability, transparency, governance and control throughout the acquisition phase and the project life cycle?
  • If speed is critical, what extraordinary demands, impacts and outcomes should you anticipate and manage, with what tactics?
  • Have you considered current contract and performance provisions in the transaction?
  • If your organization hasn’t undertaken a major capital project lately, are the right organizational framework, systems and controls in place?
  • Have you planned for all tax considerations? 

Successful deals involving PPPs

Some state governments are promoting public-private partnerships (PPPs). The thinking is that PPPs get better value for public funds by transferring risk to the private sector, which has the expertise to manage it. State agencies will be looking not just to private investors but also to private-sector infrastructure firms, through PPPs and concession agreements.

Successful deals involving PPPs require answers to key questions. For example:

  • Have you identified potential value enhancements in the project?
  • Do you fully understand the major threats to achieving base cash returns?
  • Given the current climate, have you rigorously considered strategies to enhance returns?
  • Have you considered tax and accounting issues?

Our field-proven, controlled deal process and global resources have helped our clients both manage risks and enhance value to their shareholders and investors.

For more information, contact Michael McHale or download our approach.