Infrastructure M&A: Key Issues

An overview of Infrastructure M&A

The key themes and identifying features of M&A transactions involving infrastructure assets, as compared to other M&A transactions, are that they:

• are transactions with a long-term effect given the long-life span of the underlying Infrastructure asset;
• involve high costs due to the inherent size and scope of infrastructure projects (as well as committed ongoing maintenance requirements of the underlying Infrastructure asset);
• have a material environmental impact, given the interaction between, on the one hand, land, sea, air, people and flora/fauna and, on the other, the Infrastructure asset(s); and
• given the competition for Infrastructure assets, are often sold as part of an auction process. This means that the sale process and timeline is dictated by the seller and its advisors. See also “M&A KeyNotes - Auction Sales”.