Regulatory due diligence

Regulatory due diligence clarifies how and to what extent a business is directly or indirectly exposed to the evolutions of the regulatory framework.

 

Regulatory framework analysis

  • Analyze the broader regulation agenda highlighting the critical evolution that may drive growth or create risks
  • Identify the potential regulatory evolutions in line with political constraints and/or the regulator’s own expectations
  • Analyze the specific regulatory objectives and influence players’ positions: targeted interviews with market insiders
  • Clarify the regulatory decision-making process

 

Targeted benchmark

  • Sectorial benchmark within a relevant perimeter of markets, NRAs or conceding authorities
  • Screening of best practices: cross-sector analysis, e.g. power, gas, rail, on-demand transport
  • Focus on a specific regulation tool or practice: e.g. incentive regulation on costs, quality of service monitoring, revenue schemes and levels

 

Quantitative analysis of risks and upsides

  • Quantify the most likely opportunities and risks: building of scenarios, sensitivity analyses
  • Identify potential mitigation measures