July 19, 2017
As recent pending deals have shown, M&A in the utilities industry could face heavier scrutiny, with utilities seeking to gain a competitive edge having to convince regulators that the transactions will produce meaningful efficiencies and synergies. And as the opportunities for M&A narrow — due to a majority of large companies and a shrinking minority of smaller companies — the need for M&A as a vehicle for growth persists.
In today’s utility sector, different stakeholder needs must be considered, with a fruitful M&A strategy containing three essential elements:
1. Regulatory strategy and the ability to navigate the regulatory approval process
2. Integration planning with a well-crafted initial plan that identifies specific gains and synergies
3. Transition execution through a program designed to capture the projected value as soon as the acquisition is approved and finalized
With too few utilities prepared for the strains that acquisitions bring, it is crucial that utilities seeking to provide a jolt to growth have a plan in place for M&A. Read the latest piece from strategy+business, A New M&A Strategy for Utilities, to learn more about the steps to planning and executing utilities deals effectively.