BET is a key player in the German Energy consulting market. We are developing the German Energiewende with governmental authorities and envolved market participants and organisations further. With approx. 500 projects per year for all kind of stakeholders in the energy market including governmental ministries, we are shaping the future market framework further. The deep understanding of strategies, business models, the market- or regulatory framework allows us to analyse market conditions, assets, companies as well as strategies and business model along the entire value chain of the energy market.
Within BET Transaction Advisory Services we provide an interdisciplinary approach with highly experienced M&A experts as well as expert knowledge of the entire BET group and their wide range of consultancy areas.
Key objective of a commercial Due Diligence is the analysis of the market framework, market players and their strategies. The development of supply and demand of the product portfolio of the transaction target and therefore an analysis of volumes and prices of the products is key to understand the future value. Hence, next to the qualitative assessment key business plan input parameters for costs, revenues or necessary investments are typical outputs of our approach.
The following chart illustrates for example an overview on energy flows in Germany in the status quo. Are you interested in our view concerning the future?
BET is an excellent partner for you to get a detailed view on the energy market and the current dynamics on its transition with all its complexity and interdependencies. We support you to keep an overview by identifying and quantifying the relevant value drivers for your asset as a basis for your strategies, your business models, financial forecasts, or valuation.
Our long-term based experience allows us to provide long-term simulation models and tools for volumes of all relevant commodities, electricity prices, power plant optimisation in complex portfolios for electricity and/or heat as well as storage. The provision of revenue and variable cost items for different own energy market scenarios and market conditions is important to fully understand and evaluate the target. Sales and trading activities including price analysis, margin calculation, energy trading and an analysis of the competitive landscape is key business for BET. Next to quantitative assessments also the qualitative approach of the target and its internal structure e.g., guidelines are evaluated.
The energy market and especially its infrastructures are subject to a detailed set of regulations and market rules. Regulated assets like electricity or gas networks are highly dependent on the regulatory framework and decisions from the regulator. Network access and prices of industries like water or district heating are indirectly regulated.
We support you to understand the regulatory complexity, to identify opportunities and how to adapt strategies accordingly as well as risks including possible mitigants. As also advisor for ministries like e.g., BNetzA BET can provide an expert view for the future development to be expected. According to the changes in framework also the modelling of the regulatory engine in financial models needs to adapt frequently; we are experts in this field.
Based on the experience of a high number of projects along the entire value chain we provide overviews on the status and likely development of the regulatory framework concerning the target specific details.
Part of a regulatory analysis is also the identification and quantification of the relevant revenue and cost components of the acquisition target. Analysis and forecasting of revenue caps, price systems, regulated asset base (RAB), price systems and price adaption clauses are our daily business.
Key issues of a technical Due Diligence are the analysis of the assets from a technical perspective. The potential buyer must be aware of the technical condition of the asset incl. all potential risks to be evaluate accordingly in pricing or in SPA.
BET analyses the relevant documents e.g., maintenance contracts and procedures in place of the transaction target. Where applicable, we provide on-site visits to get an even better understanding. Based on the findings, status, condition, and age structure of the asset cost relevant items will be derived. One element are operating and maintenance aspects, and corresponding costs are identified as well as upside potentials. For business planning and valuation, it is also necessary to take a view on necessary future investment requirements (CAPEX).
Key issues of a technical Due Diligence are the analysis of the assets from a technical perspective.
Evaluation of necessary future CAPEX and OPEX for maintenanc, comparison to similar assets and check for plausibility in absolute height and allocation among different asset types
One-Site assessment of asset including age structure and asset condition to identify possible risks
Analysis of historical outage and planed/unplaned interruptions, comparison to comparable assets, possible leakages/failures
Evaluation of technical assets in use (e. g. line parameters, diameters, corrosion protection) and surrounding technical equipment
Examining maintenance protocols abnormalities and indications for future investment measures, assessment of concepts for e.g., corrison protection
Analysis of mesures taken to prevent failures and outages causing temporary unavailability of the asset to reduce downtimes and minimize commercial risks
An analysis of ESG (Environmental, Safety & Governance) related issues is getting of significantly higher importance. Due to EU-Taxonomy requirements and also internal strategies of more and more market players (e.g. utilities, investors, financing banks, etc.) BET is providing together with partners an ESG-analysis of energy related assets and targets. For you we define the relevant task according to their specifics needs to present an effective the result.
ESG analysis is frequently done in combination with other disciplines like commercial, technical, and regulatory due diligence. Oftentimes we furthermore discuss specific items with the legal or financial advisor.
Following chart gives an overview on our ESG-approach.
Please directly contact us for further information on credentials for M&A projects.