indecon ’s experience in privatisation has its origins in assignments from the German Privatisation Agency (Treuhandanstalt). Since that time, we have carried out a wide range of different assignments in emerging markets, covering the entire life-cycle of the privatisation process. This broad experience enables us to offer comprehensive and innovative solutions in many different situations. We offer advice and support for the following phases:

• Framework set-up
• Transactions
• Follow-up
• Restructuring and privatisation of infrastructure and competitive industries
• Downsizing and closing down of the institution in charge of privatisation

Framework Set-Up

During the set-up phase our services focus on defining the necessary legal framework and on establishing an efficient organisation prepared to cope with all aspects required for a sustainable and successful privatisation. Our activities include: drafting legal frameworks for setting up and strengthening privatisation agencies; carrying out capacity building activities; training staff and trainers; developing and implementing national privatisation programmes and policies; providing legal and procedural advice.

Transactions

indecon has experience in providing transaction and financial advisory services through privatisation assignments. These assignments are either carried out through support of the respective privatisation agency (by managing the pre-execution and execution stage), or, directly, as a transaction adviser. When managing the process, (i.e. supervising the pre-execution and execution stage), we provide in-house advisory services to senior managers and relevant departments (e.g. auction, tender, bankruptcy and PR/marketing). Our activities include: developing the most appropriate privatisation strategy; drafting the corresponding Request for Proposal (RfP) and overseeing its implementation; supervising the due diligence process; preparing tender documents; developing, implementing and managing public awareness/education campaigns (to obtain public support for privatisation).

As transaction adviser our activities focus on implementing the privatisation method defined inthe privatisation strategy and includes the analysis of the chosen enterprises (due diligence) as well as the markets they operate in. This results in a diagnostic report and, if necessary, the implementation of pre-privatisation restructuring measures. We prepare information and sales memoranda, conduct tender procedures and contract negotiations. Through our large network, potential investors are dentified and informed about specific investment opportunities. In addition, we implement social adjustment measures to alleviate any negative impact that privatisation may have.

Follow Up

An important aspect of our services and experience is to ensure the sustainability of the privatisation process. To achieve this we develop a methodology tailored to the legal and contractual framework and, in accordance with this, we monitor the compliance of contractual obligations (e.g. investment and employment obligations as well as continuity of operations).
Furthermore, our services include analysing the impact of privatisation through an in-depth cluster and sector analysis of enterprises´ post-privatisation performance.

Infrastructure and Competitive Industries

We facilitate the more mature stage of the privatisation process when the focus turns towards infrastructure (utilities) and large competitive industries for which the privatisation-related procedures are more complex. Our services include defining and establishing the environment needed for privatising these industries, i.e. the development of a specific sector policy and a regulatory framework.

Sector Experience

Our experience with the privatisation of publicly-owned infrastructure (as well as non-monopolist industries) ranges from the energy sector (gas and power utilities) to transport (aviation, shipping and port facilities).