From M&A and joint venture advisory to project finance and financial structuring, each of Stem Investments' service offerings are underpinned by core competencies. With solid experience in the energy markets and financing execution, Stem Investments brings a comprehensive perspective in each of its service offerings
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- for major utility companies, African power producers, commodity traders or renewable energy specialists
- for financial institutions, banks, investment firms
- for governments, regulators, institutes, industrial and energy oriented associations
We advise clients in regulation, market rules, strategy and business development.
More precisely, we can provide:
- Concrete analysis of the national and regional energy markets, providing a detailed and comprehensive description of market growth and demand, of policies and regulatory frameworks, of competitive strategies of utilities;
- Support and strategic advice for their expansion plans and external growth strategies, through a risk assessment of their overall entry strategy or an assistance for the identification of companies and projects to acquire.
Stem Investment Team has valued and helped develop many power stations across South Africa. We have operational and detailed knowledge of this market.
Our dedicated experts provide both feasibility and profitability studies of power plant projects as well as timely, helpful and efficient support during the different stages of their development.
Stem Investment's services
- Preliminary and complete feasibility studies of power plant projects
- Business planning and financial modelling
- Planning chart and assistance for power plant development, for the entire administrative formalities and public acceptance process
- Due diligence and financial evaluation of power plant
Areas of expertise
- Wind farms and Hydropower
- Solar Parks (Solar PV and CSP)
- Biomass-based power plants and Gas power plants
- Cogeneration
Stem Investments can work with owners of energy assets or energy firms to help them sell their shares or find new investors. We offer our experience in Finance and Energy to help you determine the value of your assets and to facilitate your negotiations.
Presentation file & Evaluation
Stem Investments prepares the presentation of your firm, which serves as a reference document throughout the sales negotiations and is sent to all potential buyers. For this type of transaction, specific documents are required. Our experience in this type of project will enable you to put together a solid case. At the same time, our analysts prepare the necessary financial models with you (Base Case models) for the negotiations and estimation your asset's sale price.
Assistance with the negotiations & Term Sheet
Once your file has been sent to potential buyers, Stem Investments organizes the data room, visits to the site, management presentations, while supervising the acquisition audit and preserving confidentiality. We also help you with formalizing the letter of intent (or Term Sheet) and establishing the bases for the transaction (valuation, means of payment, financing and guarantees).
Our team applies the most suitable valuation methods for the company's business, whether it is already "up and running" or looking for development capital.
- firms involved in commercialization, trading, production and services in the energy sector
- power plants: wind, solar, biomass, combined gas cycle, biogas, cogeneration.
- infrastructures and networks: shipping and distribution networks for gas and electricity, storage installations, regasification.
Calculating Profitability & WACC
Weighted Average Cost of Capital (WACC) is one of the key elements in calculating the price of an asset or an energy project.
We respond to key investor concerns:
- by calculating and precisely determining WACC parameters
- by including essential variables in our calculations: country risks, exchange rates, regulated tariffs, revenues on the market or guaranteed by the State.
- and quantifying their impact on the WACC value for the asset concerned