Enterprise Energy Services Market Scan and Acquisition Target Indexing Case Study
Problem: A leading HVAC systems manufacturer was interested in building its presence in the Enterprise Energy Services (EES) market to generate services revenues and additional product pull-through. The client believed the EES market offered a strong growth opportunity, and was prepared to pursue one or more acquisitions to enter the market, but leadership needed to validate the size of the US market opportunity. The client wanted a better understanding of the market landscape in order to determine what type of acquisition target it should pursue.
- Beacon worked closely with the client to clearly define the strategic footprint the client was seeking to acquire, and developed a set of key criteria by which potential acquisition targets could be evaluated.
- Identified and profiled ~40 potential acquisition targets that met client criteria at high level, scored these companies in an excel-based indexing tool, then conducted a deeper dive into the top scoring companies.
- Over these seven weeks, Beacon interviewed over 150 market participants, including financial and industry analysts, regulators, customers, OEMs, and service providers.
Results: Beacon’s assessment identified a small top tier of Energy Services Companies (ESCOs) and highlighted a clear favorite. Later that year, the client acted on the study’s recommendation and completed a significant acquisition of an Energy Services Company. The acquisition positioned the client to grow its services footprint rapidly in key regions and exceed its North American growth objectives