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Dealflow > Wind energy ma report 2008

Latest intelligence

We are please to announce the release of the ‘Wind Energy M&A Report 2008: Value Drivers and Acquisition Multiples for European Wind Transactions in 2007’.

                              

                                     To download our borchure please click here   

Target Audience

The Wind Energy M&A Report is targeted at the following players in the wind energy market [the ‘Wind Players’]:

A)      Investors and financing providers for wind farms: renewable energy funds, utilities, private equity firms, banks  and other capital and debt  providers;

B)       Owners and developers of wind farms;

C)       Advisors and research analysts: independent and banks M&A advisors, equity research analysts of renewable energy and utilities. 

      Report Objectives

This report focuses on analysing transaction multiples, based on public & proprietary databases. Unlike classic market research or general reports on M&A activity in the wind market, it aims to:·         Provide Wind Players with reliable benchmarks for valuing wind farms and portfolios, in tandem with other valuation methodologies (DCF, etc.).

·         Segment transaction multiples for wind farms or portfolios according to development stage and analyse valuation drivers (feed-in tariffs, capacity factor, etc...) to quantify their impact on price.

·         Analyse real deal and earn-out structures for early stage wind farm portfolios, providing further insight for benchmarking portfolios and structuring potential deals.  

Methodology

The Wind Energy M&A Report 2008 is based on the detailed analysis of 40 European wind [farm or developer] transactions announced in 2007. The total portfolio capacity of the targets represents 20% of the total European installed capacity.

Purchasers of this report can access the 40 reports online via the EMAT database (Epsilon Multiple Analysis Tool™), which provides detailed and sourced multiple analysis reports (see sample below).

Our methodology is based on market practice:

·         Deals are classified according to the stage of development of the wind farm or the portfolio of wind farms [from project to operation]: pipeline, in development, in construction or in operation;

·         Multiples calculated are based on capacity (MW), production (MWh) and Sales (€), depending on development stage: installed, expected or portfolio capacity / production, actual or expected sales.

·         Probability-Weighted Multiples, based on the probability of reaching the operational stage, have also been calculated for wind farms in early stages of development.  

Key findings

·         Coherent multiples were found at each development stage, providing a robust benchmark for wind farm portfolio valuation;

·         Although Capacity multiple is often used as the key valuation reference in equity research reports, the expected sales multiple (as defined in this Report) appears to be a better benchmark to compare deals that have different capacity factors and feed-in tariffs;

·         Several of the large European deals in 2007 clearly stand out from the average multiples of their peer group, suggesting that they may have been overpriced or that there was a premium for scale.

 

This report will be updated every year, based on new announced transactions (including US targets). We intend to also publish similar reports on other climate change & environment sectors, such as Solar Energy, from 2009 onwards. Please let us know if you want to be kept informed on the planned release of these reports