Clean Tech Due Diligence

The number and size of transactions in the clean tech space has rapidly accelerated in the past five years. Literally thousands of start-up companies are seeking venture capital funding, and then after moving through the proof of concept and pilot phase are seeking equity and debt financing to move to commercial operations. A comprehensive assessment in all aspects of the developing clean tech companies is required before either venture capital or debt financing is provided.

Based on significant experience in evaluating DOE loan guarantees in multiple clean tech industries, ScottMadden has developed a tested due diligence methodology that can be applied to any clean tech company or major project. The method includes a detailed analysis of the industry, the relevant markets, the company strategy, company operations and company strengths and weaknesses, as well as a detailed financial analysis including a stress testing of the corporate financial proforma.

• Is there a sustainable market demand for the type of products or services produced?
• Do products or services adequately meet market demand?
• Is there a management team that can profitably deliver products or services to the market?
• Will the company or project be adequately capitalized?
• What are realistic expectations for future performance given uncertainties?