The Challenge

The business provided engineering services to the power, environmental heating and industrial sectors. These services include mechanical maintenance, installation and decommissioning, as well as manufacturing, fabrication and refractory services. We have a long relationship with the company, having provided business plan support in 2008, commercial due diligence on its acquisition of a related company in 2010, and a strategy update later in 2011.

Our most recent engagement was commercial due diligence on the business on behalf of a leading private equity firm. The potential investor was keen to understand the company’s ability to deliver its plan given changes within its core market sector of coal fired power generation and the early stage nature of the biomass sector, a significant driver of forecast growth.

The Approach

“This piece of work continued to confirm my strong views of CIL. I particularly value their opinions and commentary on what the macroeconomic dynamics and customer feedback mean for the business going forward. CIL is an easy name to put on our investment papers.” - Financing bank

We supported our client throughout the process. Key focus areas included:

  • The achievability of the company’s revenue and margins in its business plan as well as potential upside and downside sensitivities.
  • Opportunities available in the different sectors served.
  • An assessment of how legislative changes are likely to affect investment in coal fired power stations and the scale of the opportunity and rate of uptake of the nascent biomass market.
  • The company’s positioning (structurally and in terms of performance) to exploit opportunities in different sectors and the period of time required.
  • The appropriateness of the company’s strategy, its ability to deliver this strategy and the implications for its exit positioning.

The Result

Through our ongoing work we have supported the company in diversifying its offering away from dependency on the coal fired power sector towards a more balanced offering including biomass, chemicals and industrial plant. Our client acquired the business and it has since achieved impressive growth and acquired a subsequent business to strengthen its position in the sector, a provider of advanced emissions control and combustion optimisation solutions.

For more information contact:

Jon Whiteman

T: +44 20 3829 2720