Support of M&A deals

Avenston has been involved in investment project management for over 10 years, and also participates in fundraising, offering deep industry expertise and an optimal balance of competencies, including legal, technical, financial and marketing knowledge and experience. We have extensive practice in supporting M&A transactions, primarily for investment projects in Ukraine. Our clients include domestic and foreign investors, as well as local developers and project owners. By contacting Avenston, you can order the necessary services and receive professional support of a merger and acquisition transaction:

  • Analysis of the structure of the transaction
  • Preparation of an investment memorandum
  • Legal due diligence of the provisions of the investment agreement proposed by the potential partner in the transaction
  • Negotiation process support (mediation)
  • Adjustments and necessary additions to the investment project to fully bring it to the requirements of the investor
  • Expertise and support of investment projects (creation and adjustment of agreements, contracts, letters, inquiries and other types of documents)
  • Negotiating, language support

Renewable energy mergers and acquisitions

The renewable energy industry is one of considerable expansion. Global efforts to cut back on the use of non-renewable energy and to reduce carbon emissions stimulate investment and growth. As the world’s energy needs continue to change, the opportunities for mergers and acquisitions in this sector continue to evolve. 

M&A activity in renewable energy is driven by traditional energy businesses striving to acquire new capabilities, institutional investors seeking stable returns, social demands to address climate change, and countries working to integrate cleaner energies into their existing energy mix. This trend is actually forUkraine, too. 

Based on years of practical experience Avenston offers professional support in M&A deals in the renewable energy sector including selling/buying of commercial PV power plants. In the acquisition of a renewable power project, the following due diligence topics must be considered:

  • The venture must have an energy generation license (or exemption from a license) and adhere to the terms of the license. It is also important to know if there has ever been a breach of the license.
  • There must be assessment of the project’s profitability and any credit support requirements.
  • It must be determined whether there will be any government subsidies for the project, which can affect its funding.
  • Property rights and planning permissions must be documented, ensuring that the correct leases, easements, planning permissions, and consents are in place and compliant.

Among the deal-specific factors that influence the valuation of individual renewable assets are:

  • Asset quality
  • Finance costs
  • Regulatory stability
  • The state of the wholesale energy market
  • The competitive environment
  • The lifecycle stage of the asset relative to the prevailing subsidy regime
  • Risks beyond the control of the asset owner

We can test facilities and equipment on site and prepare a list of defects and failures with recommendations on how to eliminate it. In case of necessity our engineers can repair equipment to restore operations of your asset until design level. Besides experts of Avenston will help you to review the following documentation:

  • A shareholders’ agreement or joint venture agreement
  • Legal entity registration documents
  • Land and grid permits 
  • Connection agreement
  • Design documentation 
  • EPC contract
  • Construction certificates 
  • Testing reports and protocols
  • As-built documentation
  • O&M agreement
  • Licenses, PPA agreements, fuel supply agreement (in the case of biomass or biofuel generating plant technologies)
  • Other documents

If you are interested in selling or buying renewable energy assets in Ukraine, please, contact us. We will be glad to discuss any opportunities for cooperation and to propose to you our deep industry knowledge to make the future deal more safe.