Since 2011, Marshall & Stevens has provided independent value opinions for thousands of energy generation project transaction – over $100 billion of project values. Our team includes professionals with senior designations in financial, machinery & equipment, and real estate valuation as well as former leasing, project development, audit firm, and construction professionals.
Attorneys and investors refer their energy industry clients to Marshall & Stevens for independent Fairness Opinions and valuations of business enterprises, securities, project valuations, contracts and other intangible assets, machinery & equipment, and real estate.
Typical assignments include:
- Independent Fairness Opinions in support of related party (fund to fund) and third-party transaction.
- Valuation of projects and related assets for financing purposes (debt, equity, lease, sale leaseback), residual value analyses and shareholder dispute.
- Purchase price allocations (ASC 805 and IFRS 3) in support of business combinations and asset acquisitions.
- Fair value of fund investments for infrastructure funds and development companies.
- Valuation of equity compensation (stock options, etc.) for compliance with IRC 409a & ASC 718.
- Tax reporting including cost segregation, property tax (ad valorem) reporting and dispute, corporate tax restructuring, and repowering.
- Valuation of projects and assets for bankruptcy/restructuring/recapitalization.
- Buy/sell/fair lease rates for real estate.
Conventional Energy experience of our team includes coal, cogeneration, fuel cells, gas, and nuclear energy generation facilities, oil and gas pipelines, energy services companies, transmission lines, support structures, and ports.
Renewable Energy experience includes offshore wind, onshore wind, and solar energy generation projects as well as biomass, geothermal, waste to energy generation projects and energy storage. Solar projects valued span in size from utility scale to commercial and industrial projects, distributed generation, and residential portfolios.
The valuation of a regulated utility incorporates the understanding of the limitations under which these entities must work. Regulated utilities earn revenue through an allowed “return of” and a “return on” their investments. The Federal Energy Regulatory Commission (FERC) and respective state regulatory commissions establish the rates that a utility may charge predicated upon the cost-of-service model.
Our team has experience in valuing capital intensive regulated companies and assets. Through its energy sector experience, our professionals understand the capital-intensive nature of such assets with capital reinvestment and rates of return generally being based on the respective commissions’ perceptions of the cost of debt capital and the cost of equity capital. Analytic valuation techniques for the subject regulated assets would be driven by:
- Subject return rate and capital expenditure analysis
- Rate case analysis and return trends
- Comparative market analytics to and valuation based on publicly-traded investor-owned utilities and guideline transactions, as well as discounted cash flow valuation at appropriate market extracted capital costs and financing assumptions
Our clients include corporations, municipalities, utilities, foreign-backed and domestic developers/sponsors, domestic and international financial institutions, and infrastructure funds.
For more information about our services, please contact one of the professionals listed below.