Structuring transactions
Relians, structuring your transaction from an Institutional perspective
In transactions requiring a decision from public authorities, it is essential to approach the deal from an institutional perspective to ensure the best possible valuation of your strategic assets.
Relians anticipates the institutional approval of your transaction
In transactions involving a decision from public authorities, it is essential to approach the deal from an institutional perspective to ensure the optimal valuation of your strategic assets.
State at the table
In such a context, where public authorities intervene in investment or M&A transactions, Relians helps you anticipate the critical points of future interactions between the state and the parties involved. This naturally includes implementing various services, primarily strategic diagnostics.
The biggest challenge in such transactions lies in identifying potential irritants or even deal-breakers. This challenge is compounded by the fact that public authorities do not communicate—let alone justify—the sensitive points, especially when these concerns involve national security.
Relians helps you not only anticipate these critical points but also decode the unspoken elements.
Anticipating Roadblocks
In strategic transactions, public authorities play a crucial role, intervening at various stages of negotiations and exercising their prerogatives as a governing power. This is especially true in transactions requiring foreign investment approval.
As a major player in this regulation, the state can deploy substantial resources to protect national interests in sectors deemed strategic. It does so not only through regulatory tools but also by taking stakes in the companies involved. The state becomes a full participant in the transaction.
Relians helps you anticipate all the situations arising from the state’s involvement in your transaction.
Relians structures your transaction from an institutional perspective
Institutional structuring refers to the entire process required to develop the financial, legal, and operational framework of a transaction, while considering the doctrines, priorities, and strategic issues of public authorities, both in the short and long term.
Conducting Institutional Due Diligence
The main objective of Relians is to ensure that the transaction is acceptable to all stakeholders, particularly public authorities, who play a key role in the regulation and approval of numerous operations, including mergers and acquisitions, investments, and the divestment of strategic assets.
Here, the approval of public authorities is not merely a formality, but a strategic lever to be integrated from the outset of the transaction. Institutional structuring must align private objectives with public priorities, while ensuring the long-term viability of the deal.
In this context, institutional structuring is realized through institutional due diligence. It involves a set of diagnostics, analyses, and recommendations aimed at decoding what is left unsaid, understanding implicit intentions, and identifying the expectations of public authorities. This forward-looking analysis is crucial for resolving points of friction and facilitating the valuation of asset divestments.
Providing a unique expertise
The structuring process must be carried out with great precision, in coordination with other stakeholders such as legal, financial, and sectoral advisors. The goal is to shape the transaction in a way that meets the requirements of public authorities without compromising the viability of the deal or the long-term sustainability of the involved company.
In this context, Relians brings in experts who are particularly skilled at navigating regulatory and institutional challenges. Our specialists are fully qualified to assess the implications of the transaction at all levels and to devise a strategy that ensures the security of the deal while respecting the constraints imposed by public authorities.
The involvement of our experts is crucial for successfully executing complex transactions, ensuring compliance with regulatory requirements without undermining asset value or the success of the transaction.
Relians secures the valuation of your assets
in the institutional context
The valuation of strategic assets requires mastering institutional uncertainty, which can impact this value by limiting available options or even blocking the transaction.
Institutional uncertainty impacts the valuation of strategic assets.
The parties involved in the transaction must now be fully aware that the loss of value in a deal can be significant due to strict government requirements or regulatory obstacles. Therefore, it is crucial to adopt a negotiation strategy from the outset that considers the public dimensions of the transaction in order to minimize the risks of disruption and uncertainty.
Ultimately, the situation boils down to the question of the value of an asset that cannot be sold—or one that cannot be sold at all. Beyond valuation, the issue of the number of potential buyers also arises.
Reducing institutional uncertainty secures the transaction.
To ensure the success of the transaction and preserve the value of the asset, technology, or company involved, close negotiation with public authorities is essential.
The involvement of public authorities, and sometimes multiple states, in the negotiations of a strategic transaction can introduce an additional layer of complexity. Their participation is not trivial, as it alters the usual dynamics of negotiations. Negotiations become not only financial and legal but must also account for political, economic, and geopolitical considerations. This requires precise and proactive management of these factors from the outset to avoid delays or unforeseen blockages.
When the transaction is subject to approval by public authorities, especially in the context of foreign investment screening, the valuation of the asset can experience significant fluctuations.
With the expertise of our specialists, Relians helps you reduce this uncertainty and optimize the valuation of your transaction.
