As the markets anxiously await further details of the new Public-Private Partnership Investment Program (PPIP), banks are wondering if this will be their salvation or another sideshow. Even those who are wary of participation wonder if this program will be successful in reestablishing a market and, if so, whether that market will have acceptable pricing, from the seller’s point of view. Will the 50 percent equity investment and up to 6:1 leverage that the federal government is making available serve to buoy prices? Will a rush of buyers gleefully accept the government’s financial support? Or will the potential buyers collectively beat down the prices or walk away?

Several major elements of the program that are not yet known will greatly affect the answers to these questions. They relate to the selection of assets, the direction of the sale strategy, the selection of the sell-side team of professionals, the ability to control the bidders, and the forms of asset purchase agreements.

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