A global company with a subsidiaries in infrastructure, and manufacturing diversify their portfolio, they identified the solar photovoltaic industry as a promising option.
A global company with a subsidiaries in infrastructure, and manufacturing had decided to diversify their portfolio. They were looking for a new revenue generator that could be rolled out across the globe they identified the solar photovoltaic industry as a promising option.
The organisation asked Challenge Advisory to help it understand the outlook for the industry on a country by country basis, assess which countries would be feasible and open to new manufacturing opportunities. We were also to understand opportunities in the value chain, and develop a strategy for entry and growth.
Our research showed that the market was immature and subject to fluctuations, although opportunities did exist. The market was still in its infancy which in turn gave companies with the correct value proposition and credibility to challenge the status quo. But we found many government subsidies for PV were coming to an end which in the medium term may depress the global market and could make it harder to secure a foot hold and develop a successful business. To cloud matters our longer-term projections indicated that the market would eventually be dominated by a few global players.
With our research done we believed this was ultimately the best time for our client to seize the opportunity in an unstable and uncertain market, as when the market become stable and more certain the cost for market entry may not be justifiable as they key players will have secured market domination by this time. We worked with the company to find specific opportunities within the value chain, identifying any gaps that needed to be filled. It was agreed that our client would have to move swiftly to open up long term dominance.
Our conclusion was that our client needed to get to market, we worked with the team to identify, and assess potential M&A targets within the solar industry. We helped the client with negotiation, valuation, finance and the deal structure.