Mergers Alliance release Cleantech Report 2012
10th Oct 2011
Mergers Alliance latest report highlights international nature of Cleantech M&A
The latest report by international corporate finance partnership Mergers Alliance sets outs the cleantech M&A landscape across 17 countries and predicts expanding M&A activity over the next 18 months despite ongoing economic uncertainty.
The research specifically identifies the “globality” of the cleantech industry with some of the strongest cleantech markets experiencing increases in cross-border activity. Despite austerity measures taking place in some of the world’s largest economies, cutbacks in cleantech initiatives have not been as widespread as anticipated. “Diminishing state support mechanisms have not happened across the board. For example, in the UK the government has expanded fiscal support schemes directed at cleantech despite wholesale cuts elsewhere, and this has had a positive effect on transaction volume” stated Mark Wilson, head of the Mergers Alliance’s Cleantech Sector Team. The report shows that in some cases, where local incentives have been withdrawn, companies have pursued acquisitions in more economically attractive geographies.
Some of the key findings included:
• Just under 50 per cent of all cleantech transactions within the 17 countries reviewed were cross-border. This reflects the highly international nature of the industry and is much higher than in many more traditional sectors;
• Certain countries have established clear comparative advantages in particular renewable energy segments due to their geographic, political and industrial profiles. The strength and future potential of sub-sectors in different countries is influencing investment flows and corporate acquisition activity. The research also shows how certain sub-sectors are becoming economically viable without government backing;
• The high growth rate in private equity investment in cleantech is expected to continue, and indeed increase, helped by their willingness to invest across the full financing cycle; from venture funding, through buyouts to project financing. In addition to the continued expansion in funds raised to focus on cleantech, the definition of cleantech is broadening and now includes companies which are focused on segments such as industrial efficiency;
• The solar industry is one of the likeliest sectors to experience an increase in M&A activity, with reductions in government domestic support actually driving cross-border transactions.
The report is based on research done by Merger Alliance professionals across the globe and covers the main factors affecting M&A transactions as well as macro indicators and the general cleantech environment in each featured country. The research has also predicts some key cleantech investment areas in the near future.
"Our experience of working with businesses in a number of cleantech sectors shows the appetite for cross border M&A, driven in particular by large international corporates. This report provides insights into how country specific legislation and geographic expertise is influencing these investment decisions. It is the first report of its kind, with a key focus on mid-market M&A and should be an invaluable source of information for anyone operating in the cleantech sector" explained Andy Currie, Managing Partner at Catalyst and current Chairman of Mergers Alliance.
Click on link below to download the full report
For more information, please contact Stas Michael on +44 (0)207 881 2990 or