Transaction Advisory Services



Infrastructure Projects are characterized by numerous hurdles such as approvals and clearances, bureaucratic controls, long gestation period, poor financial support and public opposition. MSN Infra addresses such diverse and intricate projects requirements by providing financial, economic, technical, legal, social and institutional advisory for Infrastructure Projects. MSN Infra with its vast experience has successfully handled large projects executed under government funding, private funding and Public Private Partnership mode. From conceptualizing to financial closure of projects, MSN Infra performs the task of Transaction Advisor so as to maximize value and minimize risk during the transaction process and beyond.

Our focus is on helping our clients improve their transaction outcomes and negotiating position, and accelerating a smooth transaction with minimal disruption. Our comprehensive financial due diligence services combined with our technical expertise with industry-specific knowledge help us in delivering independent and tailored transaction advice attuned to our clients’ needs.



Sector

Financial advisory service backed by years of experience and proven analytical expertise is backbone of our consultancy. Financial Analysis is the most important aspect of any proposed project as it influences the Go/No-Go decision for the given project. It is also helpful in attracting private party to get involved in the project. The analysis represents the performance of a business, a project, or any other investment.

Economic Analyses in an public domain project is aimed to assess economic gains a project would bring in terms of employment generation, removing gender bias and creating a financial momentum to attract investments.

MSN Infra has participated in financial and economic analyses of large projects and has developed sophisticated financial models to address the related issues. MSN Infra through its intense expertise carries out financial analysis of projects by computing various financial ratios like Net Present Value (NPV), Internal Rate of Return (IRR), Return on Equity (ROR), Debt Service Coverage Ratio (DSCR); preparing projected Balance Sheets, Profit and Loss Accounts and conducting sensitivity analysis over the specified period of time. These help organization in considering major financial decisions on capital structuring, project financing, cash flow planning, investment returns etc.

MSN Infra uses such tools that allow various business options and risk to be evaluated in a cost-effective manner against a range of assumptions.

Each business/ merger or acquisition needs to ensure that the financial information and data they hold is correct and gives an accurate result in taking financial decisions and in risk management. This can be ensured by undertaking financial due diligence of a firm/ project/ proposed project or a merger. It provides a reasonable level of enquiry on financial affairs having a material impact on the prospects of the business.

MSN Infra helps identify such accuracy and level of dependency on such projects by conducting due diligence. It examines the various aspects of the past, present and near future of the business. We examine various documents like balance sheets, Profit and loss account, bank statements, bank guarantees, loan proceeds (if any), cost assumptions, etc. It enhances understanding of the target business and identifies critical success factors.

How to find competent and worthy partner? This is the question that dogs all. Projects being long duration projects, identifying true potential of intending partner becomes one of the most crucial phase in project planning and execution. What level of expertise and experience should be considered appropriate before awarding the contract? More importantly, how to define the project objectives are some of the areas requiring specialized skill-sets. Maintaining secrecy and transparency are must in any contract involving government projects meant for public. Bid Process Management enhances flexible negotiation of proposed price, schedule and content of customer deliverables. Typically, bid and tender management processes are complex, complicated and time-consuming. The larger the project more acute and complex its problems become. The entire process involves huge investment of time and resources and can easily devour into deadlines and budgets if not managed well from the start.

We have the expertise in managing entire bid process starting from conceptualizing the project, laying technical and financial parameters, BOQ, inviting expressions of interest (EOI), preparing request for qualifications (RFQ), request for proposals (RFP), drafting notice inviting tenders, fixing evaluation criteria and evaluation process, wrapping up with selecting successful bidder and awarding the contract.

MSN Infra follows rigorous processes and guidelines to facilitate the process. Given the critical performance and regulatory issues involved, each document is duly vetted by experts.

Transaction gets closed once finances for the project are tied up. Through sophisticated financial modeling and sensitivity analysis, we provide detailed advice on the most cost-effective financial structuring and project financing combinations. We help indentify various options of funding for the proposed infrastructure development projects. Our range of services covers debt funding, PE (Private Equity) Funding, Project Financing through banks and other financial institutions. There are also funding schemes floated by the government under which the funding can be done. The Government also provides Viability Gap Funding (VGF) for projects which are not financially lucrative proposals but are economically and socially viable. Urban Local Bodies (ULBs) and State Governments may claim the funds from various schemes floated time to time by Central Government such as Jawaharlal Nehru National Urban Reform Mission (JNNURM) and Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT)/National Lake Conservation Project (NLCP) and National River Conservation Directorate (NRCD) for the funding of water bodies across the country.

MSN Infra identifies schemes appropriate for the funding of the given project, and assists its client in obtaining required clearances.

Articulation of operational requirements with legal precision is an art mastered by MSN Infra over the years in drafting Concession Agreements for PPP projects. An agreement that has to bind the Government and the Concessionaire for the concession period and weather ups and downs of the project complexities during implementation and execution is drafted with deep understanding of the project needs and constraints surrounding it.

We also provide assistance in formation of a Special Purpose Vehicle (SPV) so as to facilitate the project with proper financial structure.

Cases requiring renegotiation of concessions and user charges are quite common in developing economies where it is difficult to visualize emerging scenarios over the project period. Stakeholder’s concerns are addressed, revenue sharing mechanism is fine tuned and necessary negotiations are facilitated so as to develop a healthy relationship between our clients.


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