Situation
- US-based VC firm requested JMI to help its Partners in analyzing exit valuation for their renewable energy portfolio company.
- JMI was asked to provide the outline of the specifics to be reviewed for the valuation exercise, including details of the portfolio company.
Solution
- Performed a screening for public and private entities in the renewable energy space and compiled a list based on their offerings.
- Filtered and reviewed renewable energy companies with a detailed analysis and history of all the investments and acquisitions in the sector.
- Computed their current and forward trading multiples and arrived at a range of exit multiples.
- Provided the range of valuation multiples based on the analysis and helped identify KPI enabling premium valuation.
Outcome
- Provided a detailed review and synopsis of deals and exit valuations within the US renewable energy space and the exit valuation range.
- Created a deal enhancer document emphasizing the strategic advantage of the portfolio company.
- Created a list of potential strategic (competitors, value chain etc.) and financial buyers (sale to PE fund) for the portfolio company.
- Helped the VC firm take an informed decision regarding exit opportunities, enabling them to realize optimum return on investment.
