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The M&A trap for utilities
31/08/2001. Source:McKinsey Quarterly. Tera Allas
 European utilities are off on a buying spree - and sometimes pay more than 100 per cent of the value of the assets they acquire. This article from McKinsey Quarterly seeks to understand how asset prices move in a newly deregulated market and why this should help utilities make smarter purchases.
Understanding how asset prices move in a newly deregulated market should help utilities make better judgments about the right price to pay. In a bid to secure growth, utilities have been on a buying binge for generation capacity, distribution networks, and customer franchises in Europe's deregulating markets.
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Extracted from The McKinsey Quarterly, 2001 Number 3
The McKinsey Quarterly, a journal in print and online from McKinsey & Company, featuring the latest thinking on business strategy, finance and management
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