WIND ENERGY M&A REPORT

Value Drivers and Acquisition Multiples for European & US Wind Transactions

Following our 2008 Report, we are please to announce the release (Sept. 2010) of the ‘Wind Energy M&A Report 2010, Value Drivers and Acquisition Multiples for European & US Wind Transactions in 2008/2009’, produced by Epsilon Research in partnership with Climate Capital Ltd.

Target Audience

The Wind Energy M&A Report is targeted at the following players in the wind energy market [the ‘Wind Players’]:

A) Investors and financing providers for wind farms: renewable energy funds, utilities, private equity firms, banks and other capital and debt providers;
B) Owners and developers of wind farms;

C) Advisors and research analysts: independent and banks M&A advisors, equity research analysts of renewable energy and utilities.

Report Objectives

This report focuses on analysing transaction multiples, based on public & proprietary databases. Unlike classic market research or general reports on M&A activity in the wind market, it aims to:

• Provide Wind Players with reliable benchmarks for valuing wind farms and portfolios, in tandem with other valuation methodologies (DCF, etc.).
• Segment transaction multiples for wind farms or portfolios according to development stage and analyse valuation drivers (feed-in tariffs, capacity factor, etc...) to quantify their impact on price.
• Analyse real deal and earn-out structures for early stage wind farm portfolios, providing further insight for benchmarking portfolios and structuring potential deals.

Methodology
The Wind Energy M&A Report 2008 is based on the detailed analysis of c.50 European& US wind [farm or developer] transactions announced in 2008/2009.

Purchasers of this report can access the 50 reports online via the EMAT database (Epsilon Multiple Analysis Tool™), which provides detailed and sourced multiple analysis reports (see sample below).

Our methodology is based on market practice:

• Deals are classified according to the stage of development of the wind farm or the portfolio of wind farms [from project to operation]: pipeline, in development, in construction or in operation;
• Multiples calculated are based on capacity (MW), production (MWh) and Sales (€), depending on development stage: installed, expected or portfolio capacity / production, actual or expected sales.
• Probability-Weighted Multiples, based on the probability of reaching the operational stage, have also been calculated for wind farms in early stages of development.