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Everyone is experienced until you ask this question
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Twenty years in the market. Dozens of transactions. Deep sector knowledge. Blah, blah, blah… Everyone says they are experienced… until you ask the question. “How much will it cost?” The answer: “It depends.” If you have seen this before you continue to dig in and you’ll see these answers: “We’ll charge based on time incurred.” “We can give you an estimate, but it won’t be binding.” I get it… I’ve been there. Partners. Directors. Senior managers. Managers. Analysts. Look. Everyone is apparently experienced… provided that you carry the risk of how long they take. Of course, not everything can be fixed price. If the problem is genuinely unknown, the scope is changing or litigation has just started, pretending otherwise would be ridiculous. But managing an operational PPP SPV is not an archaeological expedition. The work is largely knowable: Board reporting. Contract management. Lender obligations. Financial oversight. Stakeholder management. Managing the contractor and operator. Keeping the asset out of unnecessary trouble. If you have done it before, and genuinely understand it, you should be able to price it. That is why at Vilentia we are introducing a fixed-price approach to full SPV management. We agree on the job, the boundaries and the exceptional items. Then we put a price on it. If the work takes us longer than expected, that is our problem. If we need more resources, that is our problem. If we underestimated the effort, that is also our problem. The investor gets cost certainty. We get a very strong incentive to manage the SPV efficiently. A fixed price is not simply a pricing mechanism. It is evidence that your adviser understands the work well enough to take some risk. Everyone says they are experienced. Ask them to price that confidence. If you own or manage an operational PPP in Australia or New Zealand and would like to discuss our fixed-price SPV management service, click below. No rate cards. No accumulating hours. A defined job. A defined price. Our risk.
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Vicente Valencia
Weekly insights on how to perform when it matters | High-stakes decisions. Real situations. No BS. | 👇JOIN +2k readers 👇
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