Wind Power Plant Acquisition
ScottMadden has helped a number of firms perform M&A due diligence and integration analyses. Contact us to learn how we can help support your renewable projects.
At a Glance
Financial Analysis
Performed financial sensitivity analysis to determine
- Return on Investment
- Yield Metrics
Bidding Strategy
Identified unique “win-win” bid opportunities
- Included both the power plant and the 10,000+ acres of land
- Created additional revenue streams for client
End-to-End Support
- Ensured the client’s bid was accepted by the developer
Challenge
To take advantage of an acquisition opportunity, our client, a power generation investment firm, contacted ScottMadden to support the diligence of an in-development utility-scale wind energy power plant. The asset had run into permitting issues and was at risk of being discontinued. Our client, who had extensive power generation permitting experience, hoped to buy the plant at a discount, resolve the issues, and divest the asset for a multiple of the original cost. Our consultants were brought in to validate the bid price and guide the purchasing strategy.
Process
- Engagement of our network at leading electric power, utility, and renewable energy firms to benchmark various utility-scale wind energy project costs in the market
- Performance of financial sensitivity analysis for the project’s return on investment and yield metrics
- Identification of a variety of bidding strategies that offered different “win-win” scenarios for both our client and the developer offering the asset
Result
- We evaluated the bid and made the recommendation to expand the current bid to include both the power plant and the 10,000+ acres of land on which the asset was being developed
- This enabled our client to create additional revenue streams by owning both the wind asset and land through avenues such as lease payments and mineral mining
- Ultimately, with the support of our consultants, the proposed bid was accepted by the developer
Let’s Work Together
We don’t solve problems with canned methodologies. We help you solve the right problem in the right way. Our experience ensures that the solution works for you.