Renewable energy is growing at a tremendous pace in India.
While some sectors are growing faster than others – solar and wind power are especially growing super fast – one can expect significant growth to happen in other sectors such as biomass energy, small hydro, and waste to energy sectors as well.
Not surprisingly, such a strong growth is also witnessing significant amounts of M&A activities.
In some cases, M&A is happening as attractive targets emerge; in some other cases, acquisitions of small or weak companies are happening because they are available at a low acquisition price.
In all these M&A activities, or in related equity investment activities, a critical component is the due diligence of the target company. Due diligence is important for the following reasons:
1. The renewable energy sector is new and hence carries with it a significant number of uncertainties, some owing to technology changes, others owing to policy and regulatory changes/volatility.
2. Due diligence is also important to be done on the target companies as many of these companies are small, with nascent technologies, with some of them also operating on new business models.
As a result of the above, EAI has seen a significant increasing in the number of companies seeking our assistance for due diligence of Indian renewable energy companies.
Utilizing our knowledge of, and leadership in the Indian renewable energy sector, we offer these services for the following sectors for due diligence and assessment of companies in the following sectors:
- Solar – both Solar PV and Solar Thermal
- Wind Power
- Biomass Energy – both biomass Power & biomass-based heating sectors
- Energy Efficiency
- Waste to Energy – companies operating in MSW as well as agricultural /biomass waste
- Emerging cleantech domains – such as Energy Storage, Green IT, Fuel Cells etc.
We can provide due diligence/evaluation on the following:
1. Technology Assessment – We can do an assessment of the technology/equipments used to determine their real worth in terms of what they can produce and their technological maturity/superiority
2. Market Assessment – We can do a thorough assessment of the market for the product/solutions of the target company. This includes detailed research of the present and future demand and supply, competition, key drivers of success (including analyses of the key policies of the government and their impact on the company), and more. This part of the research will provide an effective understanding of the market structure and situation of the target company.
3. Assessment of the Company Management – Successful renewable energy companies need their top management to have both excellent domain knowledge of the industry, as well as possess strategic decision making skills. EAI, with its team of industry experts as well as MBAs from top business schools, is well placed to do this part of due diligence for the target companies.
EAI can thus assist those keen on investing in, or acquiring renewable energy companies, with a comprehensive due diligence that includes a thorough technical, market and management due diligence.
With our expertise of the industry and our nimble work ethic, we can complete such due diligence in relatively short duration, providing the investor with
Should you be interested in taking EAI Renewable Energy Co Due Diligence services, send in a note to firstname.lastname@example.org with brief details about your requirements.
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