As energy firms adapt to deregulating markets and current industry conditions, re-positioning strategies can lead to the purchase or sale of energy assets. In these instances, accurate asset valuation is critical. We have experience using a full range of asset valuation techniques based on internal models from traditional approaches such as DCF to more market-based approaches including real-option valuations. These techniques can be applied to generation, storage and T&D assets as well as to retail portfolios. Depending on the regulatory framework, these techniques can be also incorporated into innovative approaches to cost of capital calculation.

With a full suite of valuation tools, we can support negotiation, purchases, or sales of single assets, as well as more complex transactions, such as municipality privatizations or utility IPOs. Our detailed understanding of the assumptions of the various valuation models allows us to identify and isolate the critical value drivers of competing offers. We have experience playing a leading role on these activities as well as a supporting role complementing investment banks.

Our experience in valuation includes:

• Supported the negotiation for the sale of a large portfolio of generation assets at a major regional utility. Valued assets using traditional approaches as well as real-option based approaches. Identified assumptions and flaws of competing bids.
• Supported the M&A arm of a global investment bank in applying advanced, market-based valuation techniques.