Market Due Diligence | Competitive Landscape | Target Identification

Business need

  • A UK-based mid-market private equity (PE) firm wanted to invest in mid-sized businesses that distribute Solar Photovoltaic (PV) and Wind Turbine parts, across select markets globally.
  • RocSearch appointed a dedicated team for the client and tasked it to map the entire landscape of Solar PV and Wind Turbine parts distributors in Spain, Brazil, Italy, Mexico, Colombia, the US, France, and Poland.
  • The client was interested in both pure-play and diversified distributors with a minimum revenue of EUR 20 million.

Identify investment-worthy, mid-sized platform targets in the Solar PV and Wind Turbine parts distribution sectors in select markets.

The client outlined three key reasons for selecting RocSearch:

  • Our proven investment research and advisory capabilities.
  • Our target identification approach with a record of identifying niche opportunities.
  • Our comprehensive approach of leveraging automation to screen a large number of public and proprietary sources.

Approach and Methodology

  • The dedicated team screened a universe of more than 2,000 companies operating in the renewable energy equipment distribution sector.
  • From this universe, the team shortlisted distributors of Solar PV equipment such as inverters, structures, connectors, modules, and wind turbine equipment in select markets, with revenues of more than EUR 20 million and EBITDA of more than EUR 1 million.

RocSearch shortlisted about 90 companies for solar parts and about 30 for wind parts, based on their size and key suppliers and brands.

  • RocSearch created strip profiles of the relevant targets capturing key details such as types of equipment distributed, geographic presence, financials, ownership, and business focus (diversified or pure-play).
  • The detailed study, delivered in PowerPoint and Excel formats, included actionable summaries split by geographies.

Business Outcomes

  • Our extensive research provided an in-depth understanding of the competitive landscape of the renewable energy equipment distribution industry and its product line to the client.
  • The study also helped the client assess potential platforms and bolt-on opportunities in the sector, to drive consolidation in the market.
  • The study provided the client with a list of about 120 qualified potential targets, saving significant internal resources of the client.

The study helped the client save 300+ hours of analyst time and enabled it to quickly initiate the next round of diligence for high-potential targets.

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