Problem

Having undertaken buy-side due diligence work for the asset, WA Investor Services was commissioned by the investor for two further projects: firstly, to support a bolt-on acquisition and, secondly, to support the sale of the business.

Our Policy Risk Analysis showed the asset being affected by three areas of policy: health and safety regulation, employment law and the government’s regulatory reform agenda. The client needed clarity on the future direction of travel in these policy areas, and analysis on whether this presented market opportunities for the assets or would weaken demand for its services.

Solution

We researched and mapped recent trends in the policy areas concerned, assessing how policy change had impacted demand for the asset’s services. This considered factors such as introduction of the national minimum wage, changes to parental leave, reform of employment tribunals and the government’s attempts to reduce regulatory burdens on businesses.

From this basis we modelled the effect that current policy proposals would have on the asset. We overlaid the analysis with interviews with key government policymakers and sector experts to generate qualitative data and refine our conclusions.

Results

WA Investor Services provided a political due diligence report that enabled successful acquisition of a bolt-on to the main asset, leading to significant business growth.

Subsequently we delivered a further analytical report that facilitated the sale of the asset.