PUBLIC PRIVATE PARTNERSHIPS AS ALTERNATIVE TO M&A TRANSACTIONS

From the book's preface:"With 3.7 trillion global value over almost 50 thousand deals worldwide, the importance of mergers and acquisitions has constantly risen over the last few years, it being an immediate way to grow a company willing to invest.Some could summarise the main objective of a merger to be that of quickly make synergies and gain sufficient know-how to improve one company's internal processes or expand the market share in the same or other sectors. Although favoured by the ease of sourcing capital at minimal interest rate, acquiring other entities is not the only way to achieve such a result: there are plenty of contractual options which - each with its own characteristics - could prove very effective in order to incentivise new projects aimed at creating value in the long run.As will be better discussed in this book, creating a partnership instead of directly acquiring an enterprise could be an interesting method to meet the same target. This is especially meaningful for public administrations, where the options at government hands are limited and flawed. Entering directly with equity could in facts be too complex, and traditional procurement may not be so effective, not only in terms of cost (there can be possible issues with the quality of results, risks faced and obviously): given the contingent scarcity of public resources and tight operational ties.This writing focuses on describing the forms of public private partnerships and their benefits, with useful real-life examples that can be helpful to better understand the subject.