Renewable Energy M&A11 March, 2021
The fastest, most secure platform to prep a Renewable Energy M&A deal.
While the energy sector as a whole experienced a dramatic downturn in demand in 2020 triggered by the COVID-19 pandemic, the renewables sector has been a bright spot. Renewable energy accounted for 34 percent of all energy M&A activity in 2020. Although the total renewable energy M&A value dropped 21 percent year-on-year to $1.26 trillion and volume fell 15 percent over the same period, the lion's share of the decrease in activity took place in the first half of 2020, and total value in the second half actually topped pre-pandemic levels.
The pandemic’s negative impact on renewable energy has been felt most in delayed construction starts, down by 5 percent (12 percent wind turbines, 16 percent solar) in 2020.
Renewable Energy M&A in 2021
Overall energy demand is directly linked to economic growth, making it a challenge to forecast how quickly US and Canadian industrial production will rebound. But the overall outlook for renewables in 2021 and beyond is positive, based on multiple factors:
- The renewable sector is supported and prioritized by the market and by politics
- Pricing remains healthy, largely due to longer-term contracts with municipalities and utilities
- Renewables production is expanding geographically and into new energy sources, including hydrogen development
- Construction is forecast to return to pre-pandemic levels in the first six months of 2021
- M&A activity can deliver cost advantages from economies of scale, greater liquidity, and an improved balance sheet
- Finding M&A financing is always challenging but is possible, most likely at interest rates higher than the low rate of 2019 and pre-pandemic 2020
Renewable Energy M&A Due Diligence is a Challenging Process
Due diligence requires the examination, evaluation and analysis of every facet of a target company’s operations, a process that can involve access and storage of thousands of documents and collaboration of a large number of people – lawyers, accountants, analysts, industry experts, project managers and others with important input.
Many Renewable Energy M&A transactions were slowed during the pandemic, mostly due to organizational issues created by remote work. Renewable Energy M&A due diligence without the right organizing platform is a labored process at best.
ShareVault to the rescue!
ShareVault is the software platform of choice for M&A activity. Our energy sector clients include Australian-American Energy, Aura Minerals, Consolidated Thompson, Dahlman & Rose, IncaPacific, Quantex Energy, Redleaf Resources, Tetra, and US Corp. ShareVault is also used for M&A due diligence by companies in Law, Life Sciences, Pharmaceuticals, Real Estate and other industries.
Why smart renewable energy companies choose ShareVault
Simply upload your documents to a ShareVault secure virtual data room and “tag” them. ShareVault’s unique hierarchical tags work like folders but have the additional advantage of providing cross-links to where a document appears in multiple locations within your brief. Filters allow sorting by file type, date and publishing source and can be “starred” as a favorite. At any point in brief preparation, you can add new tags and reorder using drag-and-drop – ShareVault’s document management software will automatically update numbering.
Speed your brief prep with ShareVault’s powerful search functions that allows you to locate important documents quickly and easily. Search results are sorted by relevance, with synopses showing how the searched keyword(s) are used in context. As you search, view “zoomable” thumbnails that provide a quick peek of a document’s first page and use “infinite scrolling” to scan a document to determine its relevance quickly.
Access and Review
Team members can access documents in a ShareVault secure virtual room from any device and any web browser with the proper viewing permissions, without the need of your company’s IT department involvement.
ShareVault provides multiple levels of protection, starting with control over access to the ShareVault secure virtual data room where documents are stored. To further ensure access security, ShareVault provides team leaders with a set of permissions that control access to specific or all documents:
- Protected documents are AES-256 bit encrypted and can only be opened with an active ShareVault connection
- Due diligence team leaders can specify whether or not a user has the right to print, save, copy/paste text, capture a screen or access the original document, whether a watermark should be applied, and an expiration date/time
- Team leaders can modify rights at any point in the process
- Documents can be remotely "shredded", which means a user's permission to open a document can be revoked retroactively, even for files already downloaded
- ShareVault document control technology is applied uniformly, regardless of whether documents are viewed on Windows, Mac, iOS or Android
Focus on the deal, not the process!
The value of a great Renewable Energy M&A due diligence team is their ability to examine, evaluate and analyze. ShareVault supports your effort with a Due Diligence Checklist and user-friendly software that ensures your brief is comprehensive, secure and completed on time!