CTI provides a full range of Acquistion and Divestiture services for owners and developers of clean and renewable energy projects, in each case tailored to your company's exact needs, including:
Project Acquisitions
- M&A strategy
- Market analysis
- Due diligence to uncover hidden attributes that can justify paying more
- Bidding/negotiating strategy to win bids
Project Divestitures
- Using independent valuations to uncover hidden value
- Positioning your project for maximium negotiating leverage
- Conducting competitive auctions
A factor that differentiates CTI from other advisors is that it typically applies a team of financial, commercial and technical restructuring experts in looking for ways to increase a project's value. This applies equally to situations where CTI is representing a seller and wants to make sure they aren't leaving money on the table, as well as to ones where CTI is assisting a buyer to acquire a project whose value can possibly be enhanced post-acquisition. You can see this philosophy reflected in the transactions described below.
Representative M&A Transactions
-
Gasification technology sale - Managed the sale of the E-Gas gasification technology and 23 person technical and marketing team to ConocoPhillips. Services provided by CTI included structuring the transaction, modeling plant-level economics, valuing the asset, identifying investors, drafting the information memorandum, contacting 117 companies worldwide, managing the bid process, assisting to negotiate terms and acting as intermediary during asset sale negotiations. CTI also played an active role in negotations between the seller and ConocoPhillips in a subsequent ConocoPhillips buyout of the seller's deferred payments stream.
-
UK project equity sale - With a London-based investment bank, co-managed the sale of five operating landfill gas-to-energy projects and 22 developmental prospects. This was the largest recorded landfill gas project portfolio sale to date. CTI performed a valuation of the five projects, structured the proposed sale terms, drafted the remaining IM sections, identified 10 bidders, ran the auction and assisted with documentation. Of the six offers submitted, five were from investors introduced by CTI including the one submitting the highest bid. CTI also provided a mechanism for pricing future transactions, resulting in the investor’s purchase of five more projects before ultimately acquiring a controlling interest in the UK developer company.
- Sale of Oil and Gas Division – Led the nine-person team responsible for selling Dow Chemical USA’s Oil and Gas Division to Apache Corporation (600 wells, 14 states, 6000+ leases). When the legal teams reached an impasse in documenting the transaction, CTI's CEO and Apache's EVP were given marching orders by Apache's CEO and Dow USA's President. CTI's CEO and Apache's EVP then met for 8 hours to negotiate 18 remaining points, enabling the transaction to close 90 days later.
- Landfill gas asset sale – for a Dallas, Texas-based energy services company, managed the sale of a 5MW landfill gas-to-energy project in Goshen, New York, in the process obtaining the highest known price per MW for this kind of project. Services provided during the assignment included valuing the asset, identifying hidden value attributes, structuring proposed terms, obtaining a legal opinion on the likelihood of the project’s power sales contract pricing being upheld at this power-constrained location in Orange & Rockland’s territory, preparing the information memorandum, identifying 12 potential investors, assisting the winning bidder to conduct its due diligence, assisting to negotiate detailed terms and assisting with closing documentation.
- Valuations - Valuations with assumptions that will stand up to investor scrutiny are at the heart of most CTI divestiture assignments. The lesson here is that if your company wants to get the best price for its project, you must build a solid case for it that highlights those project features that separate you from the crowd.
Let CTI show you how it would approach selling your company's energy project or project portfolio.
Tough Assignments, Creative Solutions
Member, Financial Industry Regulatory Authority (FINRA)
and Securities Investor Protection Corporation (SIPC)
David R. Siever, Chairman, Capital Technology, Inc.
46 Tory Hill Lane, Rowayton, CT 06853
203-853-0220 Fax: 203-853-0535
drsiever@optonline.net
www.capital-technology.com