How Nextyn’s Expert Network Provided Critical Market Validation for a High-Stakes Investment
Executive Summary
A private equity (PE) firm was evaluating a $100M acquisition of a renewable energy company but needed independent validation of industry growth potential, regulatory challenges, and financial risks. The firm required direct insights from industry experts to strengthen its investment thesis and refine its valuation model.
Nextyn facilitated a series of moderated expert calls with energy regulators, industry veterans, and former executives of leading renewable firms to provide unbiased perspectives on industry risks and opportunities.
Key Actions Taken:
- Conducted expert interviews with energy regulators, market analysts, and renewable energy executives.
- Assessed policy changes, competitive pressures, and infrastructure challenges.
- Validated financial projections and return expectations for the acquisition target.
Outcome: The PE firm proceeded with the acquisition with full confidence, securing improved deal terms based on expert insights.
Client Challenges
- Uncertainty About Market Growth: Concerns over renewable energy adoption rates and government incentives.
- Regulatory Risks: Needed clarity on changing policies, tax benefits, and compliance hurdles.
- Financial Model Validation: Required expert insights to assess realistic revenue projections.
- Competitive Positioning: Needed to understand how the acquisition target compared to industry leaders.
Without expert validation, the firm risked overpaying for an underperforming asset.
Nextyn’s Solution
Expert Call Execution & Market Intelligence
Engaged top industry experts including former CEOs, policymakers, and renewable energy consultants.
Conducted one-on-one moderated calls covering:
- Renewable energy pricing trends and investment risks.
- Policy outlooks affecting tax incentives and subsidies.
- Competitor benchmarking and financial performance insights.
Strategic Investment Risk Analysis
Evaluated expert feedback to validate financial projections.
Provided recommendations on risk mitigation strategies.
Advised on deal structuring and potential exit strategies.
Impact & Results
- Enhanced Investment Confidence: Insights from former executives validated market growth potential.
- Negotiated Better Terms: The firm secured a 10% price reduction based on financial risk insights.
- Avoided Regulatory Pitfalls: Adjusted due diligence strategy to account for policy shifts.
- Strengthened Exit Strategy: Experts helped identify optimal future divestment opportunities.
Why Nextyn?
- Trusted by Leading PE Firms for industry-specific due diligence.
- Access to High-Level Market Experts for real-world investment validation.
- Custom-Designed Expert Calls tailored to financial decision-making.
- Proven Success in Risk Mitigation for Mergers & Acquisitions.
