Raftelis has assisted public and private entities throughout the United States with utility valuation and has completed numerous utility valuation assignments. The majority of these engagements included an assessment of the fair market value of the subject asset(s) and financial feasibility analyses to estimate customer rate and long-term economic impacts associated with acquisition or divestiture of utility assets. Overall, Raftelis has provided a variety of valuation services in the water and wastewater industry including the following:
Raftelis utilizes standard valuation approaches to form our fair market value appraisal opinions or other standard of value to be considered. This service can involve more detailed, formal appraisals consistent with the National Association of Valuators and Analysts (NACVA) Professional Standards, the Uniform Standards of Professional Appraisal Practice (USPAP) and American Institute of Certified Public Accountant (AICPA) standards (Conclusion of Value) or high-level, preliminary valuation analyses (Calculated Value). The subject of the appraisals can include physical infrastructure assets, appraisals of utility business as a going concern, or valuation of “intangible” utility assets, such as water rights or capacity rights in a system.
In this type of analysis, Raftelis determines the value of a set of utility assets to specific buyers or sellers. These analyses typically include the feasibility of buying a utility at a range of purchase prices. “Value” in this sense is typically defined by the client and can include the consideration of potential loss/gain in revenues, ability to pay for a system, specific rate impacts on customers, etc.
In some instances, utilities may desire to combine the ownership and management of utility assets to take advantage of economies of scale through regionalization or consolidation. Raftelis provides a variety of regionalization/consolidation assistance including: utility appraisal, consolidation financial feasibility, operations and management assessments, stakeholder engagement and communications strategy and implementation, rate impact analysis, and transaction support.