Commercial Due Diligence

Divestment, Acquisition and Beyond

In the rapidly evolving energy industry, utilities face heightened importance in gaining a clear understanding of their asset value. Given the uncertainties surrounding technology, speed to market, regulations, decarbonization, and other factors, this information becomes pivotal for scenario planning and maintaining agility as operational environments and requirements undergo transformations. Commercial due diligence plays a crucial role, particularly in capital expenditure evaluations for divestment or acquisition/investment. It also provides an external perspective on asset value for future reference or CapEx considerations when expanding, revamping, or modifying assets, such as power plants, PV fields, storage facilities, electricity networks, etc., typically valued above $50 million USD.

Divestment Perspective

When an asset owner decides to divest an asset, and board resolutions are approved, OHROS Consulting Group is well-equipped to facilitate the comprehensive process. We ensure the accurate inclusion of pertinent information in the data/deal room, providing the owner with a precise perspective on market value. Our expertise extends to defining a divestment strategy and profiling potential candidates for the transaction.

Acquisition Perspective

On the other side, for investors, the asset may present considerable appeal for various reasons, such as portfolio diversification or the potential for an attractive business case over a 15+ year horizon. Common investor types, including Private Equity, Venture Capital, Family Offices, and Sovereign Wealth Funds, often lack detailed industrial knowledge but recognize the business opportunity. Similar to the divestment scenario, OHROS Consulting Group aids potential investors by ensuring alignment between the information presented in the data/deal room and independent research (due diligence). This facilitates the preparation of an accurate feasibility study for an investment decision and an effective offering strategy.

How We Work With You

OHROS Consulting Group ‘Stand Alone’

• Providing the link between “financial data” and “engineering expertise”

• Our flag reports are greatly appreciated by Investment Committees

OHROS Consulting Group ‘Subcontractor’ of Main Due Diligence Partner

• We often work as subcontractor for Engineering firms and/or Financial advisors

• We facilitate the early identification of both green flags and red flags. Subsequently, we provide support to the Engineering firm and/or Financial advisor by conducting in-depth analyses or root cause analyses as needed.

Bespoke Due Diligence Services

We deliver value through meticulous analyses, profound industry and best practice knowledge, and strategic partnerships. Our services encompass:

  • Cost and performance analyses utilizing peer-group benchmarking.
  • Evaluation of Information Memoranda, involving structuring or exploration.
  • Gap & Opportunity analysis concerning sites or stand-alone assets, including gas-fired power plants, hydrocarbon-based feedstock industries, nuclear generation, grids, and Wind/PV installations.
  • Commercial feasibility studies.
  • Identification and contextualization of critical success factors to enhance the client’s understanding of pertinent issues, emphasizing strengths to leverage and addressing weaknesses.
  • Comprehensive assessment of the client’s business plan within the context of market conditions and the industry landscape.
  • Examination of corporate strategy and diagnostics of (under) performance, offering a prioritized ‘Projects For Improvement’ list and implementation roadmap, incorporating both qualitative and quantitative objectives.

Bespoke Reports for Both Buyers and Sellers Involved in the Acquisition Process

Vendor

1.) Implementation ISO55000 AM & Risk Management
2.) Best Practices Support
3.) Comparative Analysis to Focus Management Agenda

Bidder

Market Assessment (Grid Companies, Gas Storage, Power Plants, Water Companies)

Vendor

KPI’s to put performance into perspective (Reliability, Safety, OPEX, CAPEX, FTE, etc.). Risk Assessment

Bidder

KPI’s to put performance into perspective (tailored to peer group)

Vendor

Tailored Analysis, Support Preparation Q&A

Bidder

Data room analysis & support, by comparing key figures with peers, gap analysis. Flag report on key items

Due Diligence Support for Production, Transmission, Distribution and Commercial Management

Power Production

  • Gas Fired Power Plants (including mothalling/restart data
  • Coal & Ignite Fired Power Plants
  • Hydro Plants
  • Steam Supply & District Heating
  • Solar & Wind

 

Transmission & System Operations

  • Power Transmission
  • Assuring System Security (Methods, Costs)
  • Gas Storage & Transmission (limited)
  • Data from every continent (but Antarctica)
  • Data from small and large companies, in desert and under arctic conditions
  • Library of ‘common & best practices’

 

Distribution

  • Power & Gas Distribution Data
  • SAIDI/SAIFI root cause analysis for developing nations as well as developed nations
  • Grid loss reduction programs
  • Smart Meter Practices

 

Commercial Management

  • Margins in trading, retail, asset management
  • Option Valuation
  • Contract Valuation
  • Flexibility Valuation (Industry, Storage, Plants)
  • Costs of ‘greening’

Power Production

  • 20+ years of benchmarking experience, with experts based in USA, Europe and Australia
  • (De-)Mothballing Projects
  • Biomass Conversion Projects
  • Renewable Subsidy Regimes (selected European countries)

 

Transmission & System Operations

  • 20+ years of benchmarking experience, with experts based in USA, Europe and Australia
  • Regulatory Regime (selected countries)
  • “Deep dives” on various topics (losses, RAB, Regulatory Power, FTE’s, IT Architecture, etc.)

 

Distribution

  • 20+ years of benchmarking experience, with experts based in USA, Europe and Australia
  • Regulatory Regime (selected countries)
  • “Deep dives” on various topics (losses, RAB, Regulatory Power, FTE’s, Smart Meters, etc.)

 

Commercial Management

  • Dedicated team headed by former trading manager with extensive experience in Due Diligence
  • 5+ years of commercial management projects in Europe, China and Australia

Excerpt of Experience

Why OHROS Consulting Group?

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