Mergers, Acquisitions and Divestitures

Utility mergers, acquisitions and divestitures are extremely complex undertakings owing to stringent regulatory approvals requirements at both the federal and state levels, the need for complex multi-party agreements and resulting capital structures. Negotiated acquisitions of utility plant and systems can also be subject to significant regulatory approval requirements. Takings of utility property by municipalities under the right of eminent domain typically result in protracted litigation. Accordingly, utility mergers and acquisitions cannot be taken lightly by those considering such actions.

ERG offers comprehensive capabilities in providing consulting support to both utilities and municipalities involved in mergers and acquisitions. In particular, ERG offers the following services:

• Feasibility studies
• Physical inspections of acquisition properties
• Economic/financial analyses
• Physical and functional severance analyses
• Valuations and appraisals under various methodologies
• Depreciation and tax value studies
• Litigation support and expert testimony
• Regulatory and Financing support
• Separation and transition plans development
• Start-up support services
• Rate design and cost-of-service analyses
• Staffing plans

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