Transactions in today’s energy markets are dynamic and complex, involving the buying and selling of diverse energy commodities—such as electricity, natural gas, and renewable credits—across various timeframes and regions, driven by financial goals and the push for sustainable energy solutions. We specialize in providing expert transaction advisory services for mergers and acquisitions (M&A) within the power markets sector. Our team combines deep industry knowledge with analytical rigor to support clients through every stage of the M&A process, ensuring informed decision-making and successful outcomes. We support clients in the following areas:

M&A Strategy

We help clients identify attractive M&A targets or buyers by analyzing electricity market trends, regulatory frameworks, and competitive landscapes. Our market insights provide a clear understanding of the strategic fit and potential for value creation.

• Supporting clients with developing and fine tuning their M&A strategy by navigating the sector’s unique regulatory, operational, and market dynamics.
• Comprehensive market analysis to identify strategic opportunities and evaluate potential acquisition targets for alignment with clients’ objectives.
• Assessing regulatory implications to ensure compliance and conduct robust financial modeling and valuation to establish fair value and support negotiations.
• Advising corporate M&A teams in strategic planning, budgeting, and corporate development initiatives in the energy sector.

Due Diligence

We identify potential risks and opportunities associated with energy M&A transactions by conducting thorough assessments of financial and operational aspects of target assets or companies. We help our clients achieve their strategic objectives, whether it’s expanding market share, diversifying assets, or entering new markets.

• Conducting thorough financial, operational, and regulatory due diligence to uncover hidden risks and opportunities.
• Assessing anti-competitive effects of potential acquisitions and constructing mitigation options.
• Assessing the upside and downside of potential transactions and uncovering critical insights to assist clients in their investment strategy or before proceeding with a deal.

Valuation of Energy Assets

Evaluating potential investments is essential for capitalizing on growth opportunities. To support our clients’ strategic investment decisions and help identify value-enhancing opportunities, we specialize in stochastic analysis of energy assets.

• Financial modeling and scenario analysis, to assess the fair value of target companies or assets.
• Detailed valuations of various types of electricity market assets and infrastructure by employing state-of-the-art modeling techniques to assess their economic viability and future performance.
• Stochastic valuation of energy assets involves using probabilistic models to account for the inherent uncertainties in key variables that influence asset performance and cash flows.
• Stochastic treatment of uncertainty in the energy prices, demand fluctuations, operational costs, and generation availabilities.

Transaction Structuring & Negotiation Support

Navigating the complexities of project finance requires a deep understanding of both financial structures and the specific industry context.

• Structuring transactions to align with clients’ strategic goals and ensuring the optimal mix of deal terms, financing options, and governance structures.
• Providing analytical support for project financing needs, whether for infrastructure development, energy projects, or other capital-intensive initiatives.
• Evaluating financing structures, negotiating power purchase agreements (PPAs), assessing project viability, and identifying tax equity investors.
• Providing clients with concise, actionable insights on investments, pricing strategies, and risks.

Regulatory and Policy Guidance

We offer expert advice on navigating local and international regulations, including antitrust considerations, market access, and the impact of energy policies on transaction structures.

• Assisting clients at every stage of the M&A process, including regulatory investigations, M&A litigation support, and post-merger disputes.
• Supporting clients on analysis of market power to ensure regulatory compliance, as required by Section 203 of the Federal Power Act.
• Our methodology has been validated by FERC through numerous filings where we have supported some of the largest M&A transactions in the U.S. power sector.
• Navigating the regulatory landscape is crucial in electricity market M&A transactions.
• M&A transactions in the U.S. power sector.