Privatization

This report discusses various privatization best practices. We address key issues including:

The Public Sector as Stakeholder

Why do Governments Privatize?

Privatization Best Practices

Determine Privatization Objectives

Determine Privatization Strategy

Institutional Framework

Efficiency Factors

Corporate Governance

Corporatization

Role of Board of Directors

International Examples

Monetization Of Public Sector Real Estate: Why Sell The Family Silver?

Global Privatization Trends

PPP/PFI

Acquisition of a Minority Interest from Financial Sponsor—-

Much is spoken about private equity and financial sponsors making minority investments, but very little is known about the other way around – when firms or other funds acquire interests in financial sponsor portfolios.  I had participated in such deals and summarize my general thoughts in this deck. I discuss the rationale, structuring considerations, the types of securities will have impact on ownership, governance and pricing. I talk about governance conditions and willingness to accommodate minority investor’s requests, liquidity and exit considerations along with pathways to exit. I also provide examples of transaction diagrams for visual clarity. I conclude by highlighting timing considerations and typical process followed.

As always the devil lies in the detail. If you are considering making one such investment and need help do contact me.