What is it?
In recent years, we have seen a considerable growth in secondary market transactions, specifically in relation to acquisition and refinancing deals.
What we do?
The work we undertake on such assignments is tailored to reflect the complexity and nature of such deals.
Our approach to refinancing transactions is to focus on whether the financial model appropriately reflects:
- the original contractual arrangement and the ‘sharing mechanism’ in place, under which refinancing gains are to be shared
- the basis of the refinancing gain calculation, together with any associated pre and post tax issues
- the extraction of refinancing gains from the Project Company through either lump sum payments or via reductions in the unitary charge
- interest swap breakage costs, together with new margin, arrangement fees and commitment fees on the new debt facilities.
Our approach to acquisition transactions and equity reviews is to:
- understand the valuation methodology applied in deriving the acquisition price
- review the accounting and taxation assumptions applied on the project in order to identify potential upsides and downsides
- analyse cost structures and categories to identify potential savings
- identify instances of ‘trapped cash’ in the project, along with potential recommendations on how such amounts may be released
- assess the accuracy of the project’s forecasts compared to actual past performance, encompassing a reconciliation to underlying management accounting information.
The benefits to you
Our dedicated team of qualified accountants and tax experts has extensive experience in secondary market transactions across a variety of sectors. Our clients find our knowledge and experience invaluable adding value to their due diligence process.
In addition, our services provide our clients with confidence in the reliability of the financial models used as well as assurance that the financial models adequately reflect the underlying contractual arrangements for such transactions.
Why PKF?
We have a strong track record in secondary market and refinancing transactions with considerable expertise across a wide range of industry sectors. These sectors include infrastructure, accommodation, health, education, training, oil and gas, transport, power and energy (including renewable energy).
A number of our recent projects include:
- Bristol Airport Acquisition and Refinancing
- Swindon Hospital Refinancing
- Jarvis Portfolio of Projects
- The Secondary Market Infrastructure Fund
- Budapest Airport Acquisition.
For further information about any of the services offered please contact either Brian Tash or Kirit Mistry.
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