Financial and strategic due diligence (energy sector)
A private equity fund is interested in an innovative technology (specific turbines), developed by a rising and ambitious start-up which already achieved 2 rounds of financing.
Review and challenge an ambitious business plan, which however was not structured to reflect the characteristics of the Target’s business. Our key challenge was therefore to corroborate a realistic project-by-project forecast paving the way for a revised BP.
Benefitting from its experience and a robust skillset in financial modelling, Alba & Co designed a profitability forecast by project and proposed a method to build a BP within a short timeframe. Maintaining constant dialogue with Management, Alba & Co managed to simultaneously refine the investor’s understanding of operating and financial risks on a project-by-project basis.
Widely adopted by the Target’s CFO and shareholders, this process significantly clarified the underlying drivers of forecast performance.