We advise our clients in their energy projects and business: project development, financing, structured finance, M&A and strategic topics.
Our clients are power companies and utilities, public sector entities, investors, funds and lenders as well as companies engaged in energy infrastructure businesses. Elron’s references warrant for a wide international expertise and deep competence. Elron senior consultants have all long professional careers in industrial sector which ensures a profound understanding of the customer view in their projects and transactions.
Elron advises its clients either on the Buy Side or the Sell Side of transactions. The mandates may involve purchase of shares, businesses, assets or a combination thereof. Valuation analysis of the transaction target is an integral part of the mandates.
In a Sell Side mandate we manage a structure sales process for our client: we prepare an information memorandum, identify most potential interested buyers and make initial contacts to verify truly interested parties. We coordinate the due diligence process and represent out client in the transaction negotiations until closing of the transaction.
In a Buy Side mandate we advise our clients in all commercial aspects and financing of the transaction, backed with advice on any engineering, operational and environmental issues that may arise during the process provided by our strategic advisory partners.
We help our clients in structuring bankable projects. These services include negotiation of project contracts (PPA, FSA, O&M, EPC etc.) and preparation of the Information Memorandum, as well as preparation of a banking base case together with risk assessment, risk allocation and sensitivity analysis. We advise our clients in financing negotiations with the project lenders and coordinate the lenders’ project due diligence. We advise on project insurances.
We help public sector clients to explore the possibilities for tapping private sector funding for infrastructure investments and advise our clients in PPP/PFI funded investment projects.
Elron helps clients by developing the commercial and contractual structure to energy projects and in managing the project development phase. Focus is kept throughout in achieving a bankable project with effective technical design, construction and operation. This ensures that the desired project budget timetable and plant performance are met and environmental and safety performance excel.
Important elements of project development include:
Regulatory framework is one of the business fundamentals for companies operating in energy generation and distribution. We foresee that the increasing renewable embedded generation, digitalization enabled demand side management and plethora of smart grid applications and the regulation thereof, will profoundly reshape the utilities’ business regime.
A thorough understanding of the regulation, development and consequences to utilities’ businesses is Elron’s value add to clients. We help clients in preparing business strategies, including CAPEX and financing strategies, to respond to future customer needs and succeed in the evolving regulatory framework.
We have worked with numerous clients regarding power, heat and gas transmission and distribution regulation, e.g. analysis of pricing and tariff structures of power distribution, district heating, water and waste water.