Are You A Qualified Broker? Do You Want To Manage The PGW Sale Process?

We’re going to go ahead and assume your answer to both of those questions is no, but hey, if you know anyone, tell ‘em the city is looking for them: According to a press release, “The City of Philadelphia (City) and the Philadelphia Gas Works (PGW), which serves more than 500,000 residential, commercial and industrial customers, issued a Request for Proposals (RFP), beginning the official search for a broker to manage a potential PGW sale process.” It looks like those baby steps are becoming full-on adult steps.

If you’ve got a qualified friend who is very bored (or you want to play an elaborate prank on your qualified friend who is kind of a jerk), the job looks something like this:

The broker selected in the RFP process will manage the sale on behalf of the City and PGW. The broker will present an analysis of the bids to help the City and PGW determine whether any of them are strong enough to benefit PGW customers and Philadelphia taxpayers. ‘The broker will help identify potential buyers with demonstrated utility management and investment experience, financial strength and ability to meet our public policy criteria,’ said David Seltzer, chairman of the Philadelphia Facilities Management Corporation (PFMC), which operates PGW. ‘Once the broker performs due diligence, the list will be whittled down and we’ll see final binding offers.’”

And the pay? Oh, the pay: “The broker’s fee is a percentage of the sale price to be negotiated upon selection of the broker with a not-to-exceed cap. The broker will be paid from sale proceeds only if and when a sale is consummated.” Now, being the not-so-business-minded people we are, many of those strings of big businessy words above just kinda flew right into the comprehension part of our brain so hard that they knocked it immediately into “Is it the weekend yet?” mode. So, it’s basically like this: The city wants someone to help them sell PGW, but you only get paid if you do a good job, like one of those cheap TV lawyers. Have fun.