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.

Challenge

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.

Process

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.

Solution

Widely adopted by the Target’s CFO and shareholders, this process significantly clarified the underlying drivers of forecast performance.