Energy Efficiency Strategic Model

Client: Startup with product to enhance wind farm efficiency

A startup with a product designed to enhance wind farm efficiency had signed a large, multi-year deal with a potential strategic that was looking at making a temporary majority investment.

3 Key Insights:

We built out a detailed financial model showing the rollout of the product at several different wind farms. Important aspects of the model included (a) workload, resulting in staffing changes, and (b) working capital, requiring additional investing rounds.

 

The model was used to support the company’s valuation in discussions with the strategic investor as well as hiring plans and product pricing (as the strategic was requesting a discount on the product).

 

We used the model to negotiate aggressively with the strategic. Their initial “bully bid” investment offer gave way to a more realistic, reasonable offer that will support the company as it grows to serve many more wind farm operators.

Installation Forecast by Wind Farm

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