Wind Power Plant Acquisition
ScottMadden has helped a number of firms with renewable energy M&A due diligence and integration analyses, including support for wind power plant acquisitions. 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 the client
End-to-End Support
- Ensured the client’s bid was accepted by the developer
Challenge
To take advantage of a wind power plant 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 encountered permitting issues and was at risk of being discontinued, creating a classic distressed-asset acquisition opportunity. Our client, with extensive power generation permitting experience, hoped to buy the plant at a discount, resolve the issues, and divest the asset for a multiple of its 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 wind power plant acquisition costs and utility-scale wind energy project economics in the market
- Performance of renewable energy M&A due diligence, including 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 wind power plant acquisition bid and recommended expanding it 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.