With the liberalization of the energy market worldwide and the subsequent need to split grid activities from generation activities, grid infrastructure is regularly proposed for sale.
Investment in power systems requires advanced understanding of the business and its risks.
Technical due diligence is a key risk management tool to help identify the limitations and opportunities of an investment in a merger or acquisition before making an informed decision.
Investment Advisory and Due Diligence approach
Our due diligence process involves identifying any key risks in the vendor’s business case model, then, developing practical strategies to mitigate those risks. This provides clients with a strong foundation for project negotiations.
In addition, using its extensive global experience, EGI focusses on identifying and assessing business opportunities that can lead to upsides for possible future performance.
Per nature, EGI has a wealth of industry experience at hand to conduct tailored and detailed technical Due Diligence on any power system asset around the globe.
Tailored and detailed technical Due Diligence on any power system asset around the globe
Our projects typically involve the following elements:
- Review of information at disposal: public information, Data Room , technical studies etc.
- Review of Business Plans, Operating Models, company structure and organization
- Analysis of the regulatory framework
- Performance and reliability assessment of existing Assets
- Performance assessment of Management and Staff
- Assessment of CAPEX, OPEX and REPEX projections
- Assessment of long term investment requirements based on future needs (generation, load, asset ageing, impact decentralized generation and renewable )
- Assessment of Asset Management system, maintenance and replacement strategies
- Identification of efficiency gains and upside potential
- Identification of key risks a,d related risk management strategies
- Extensive due diligence report and detailed quantitative scenario input for financial modelling
- Red flag report, training, Operating Model, Business Plan
- Benchmarking with industry best performers through properly selected KPIs
Elia Grid International is your agile partner
Elia Grid International will bring the expertise and hands-on experience that you need during the assessment and due diligence phase by providing you with technical advisory services.
Based on its proven knowledge of the TSO industry and of the power sector, its challenges and requirements, Elia Grid International will help you assess the technical strengths and weaknesses of the company you consider acquiring, allowing you to take your investment decision with documented knowledge from within.
We will deliver an “opinion report” on the technical aspects, including an examination of the investment plans, maintenance and replacement strategy, risk management strategy, capital expenditure, impact decentralized generation and renewable in general, condition based asset management and on asset management aspects in general, using European and international benchmarks.