Pre-acquisition due diligence in Mexico

CRA professionals were retained by an investment bank prior to its acquisition of a power generation asset from a European infrastructure group that was forced to sell various assets in its portfolio in Latin America. The CRA team provided a risk assessment of the federal and state political structures; evaluated the administration’s energy policy; conducted a security risk assessment based on the project location; performed a forensic accounting review to establish the flow of funds from previous investors and whether those presented legal or regulatory risks; investigated the background of the designated EPC company for the project. The outcome was a robust assessment across multiple risks factors which provided initial risk mitigation measures for the client to consider if they proceeded with the transaction and allowed the client and its investment committee to make an informed decision.