ABSTRACT

In today’s utility marketplace, there has been increased transaction activity specific to water and wastewater utilities, both public and private. Regionalization and consolidation have become increasingly popular as aging capital infrastructure and new regulations are on the rise. In addition, the scarcity of water, a valuable resource, has brought today’s water utility into focus, making it a desirable industry for investment. Given the cost to replicate utilities, they are, in most cases, a community’s largest asset, and it is important to understand their true value. This chapter will focus on that need, and the industry-accepted approaches for calculating the true value of utilities.