Your Guide To Utility Valuation: A utility valuation can be a critical process for many municipalities and other utility providers. Cities, towns, villages, and utilities tasked with building, buying or selling an asset for their drinking water, sanitary sewer or other utility systems may realize they have no basis of comparison when it comes to applying a fair market value to these assets. Those that do recognize they need help don’t always know where to turn.
Utility valuation is a niche offering and an important one. It can make or break a sale, either in attracting buyers or in passing regulatory scrutiny. And this is only the beginning of the benefits an updated and accurate utility valuation can provide. Often the process of assigning value to utility assets uncovers forgotten or unlisted assets, making the utility more attractive and investment decisions more strategic.
Few companies are involved or experienced in this very specific type of work and, consequently, few understand the evolving regulatory environment that impacts it. This makes it all the more important to work with a consultant experienced in this type of work. However, understanding the process and what to expect from it is the first step toward seeing a utility effort achieve the greatest possible value for their constituents, residents and rate payers.