01Protect what can be realised.
A lender, an incomplete project and several competing routes. Turn a fragmented asset picture into a considered recovery decision.
Explore the situationILLUSTRATIVE CASE 03 / ACQUISITIONLook beyond the price.
Look beyond the price.
Understand the possibility.
An investor sees an opportunity in a distressed asset. Test the entry price against the full cost of making the investment work.
- Sector
- Energy & infrastructure
- Perspective
- Investor perspective
- Discipline
- Investor services ↗
The situation.
An investor is evaluating a distressed infrastructure asset offered at an apparently attractive price. The opportunity depends on more than the purchase consideration: operating readiness, contractual continuity, additional capital and the route to cash generation all affect the investment case.
01
Define what the investor is buying
The diligence scope would start with the transaction perimeter: assets, contracts, liabilities and rights that form part of the proposed acquisition. The team would identify the permissions, consents and operating conditions on which the investment thesis depends.
02
Calculate the real entry cost
The acquisition price would be considered alongside working capital, restoration expenditure, professional costs and the cash needed before operations stabilise. An apparently low price can conceal a substantial funding requirement. Timing matters because delays also consume capital.
03
Test the downside before forming conviction
The base case should be compared with slower ramp-up, weaker revenue and higher restoration costs. The investment recommendation would state what must be confirmed before commitment and which findings should change the price, the terms or the decision itself.
What the work would bring.
- Investment thesis and transaction-perimeter note
- Diligence findings linked to price and conditions
- Full funding requirement and sensitivity analysis
- Decision brief with clear commitment criteria
THE TAKEAWAYThe purchase price is only one part of the investment. Conviction comes from understanding the path from acquisition to cash generation.
This is an illustrative scenario created to explain an advisory approach. It is not a completed mandate, a client testimonial or a forecast. The actual scope and outcome depend on the facts of each engagement.
