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Green tech/Clean tech
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Green Tech/Clean Tech
With the rise in energy prices and future energy prices expected to increase heavily in the next few decades, it is no surprise that Green Tech or Clean Tech technologies have become the next "hot" technology to emerge. These technologies received extra attention in 2007 and 2008 when venture capital firms heavily backed Green Tech companies hoping to find the next "Google" of energy. The technologies include cleaner energy sources (including solar, wind, ethanol, biodiesel, and clean coal), energy storage (batteries and fuel cells), energy management (smart grid products and power efficient products), electric vehicles, nanotechnology, materials, recycling, and water conservation.
The top 100 Green Tech firms are mostly backed by venture capital. However, there are thousands of companies participating in developing and implementing these technologies. For companies that are almost at the point of commercialization to companies already having a positive income stream, Orion Capital Group does have buyers that are interested in your business. Whether you are looking for growth capital or a complete buyout, we know the private equity groups and large energy players that may want to invest in your technology or business. Contact us to discuss the options and possibilities for your technology or business.
Recent M&A Trends
The lower middle-market (deals under $100 million) has weathered the credit freeze and "Great Recession" better than the upper middle market has. The deal landscape for the middle market has changed as Wall Street has struggled, but so far, deals are getting done.
The biggest change has been in the deals has been valuations, reliance on debt and reliance on the seller to finance part of the deal. We have seen an increased use of earn-outs, which are typically used in periods where interest rates are high or credit is tight. Thus, PE groups have not stopped investing, and in fact are aggressively trying to deploy their capital into middle-market companies.
As profits are returning, many strategic buyers are more willing to use their cash reserves to purchase various technologies or intangibles that are of synergistic value to them.
Depending on your situation, now could be a good time to seek an exit or even plan for an exit several years down the road. For those that want top dollar for their company and know it will achieve strong, consistent growth for many years, now is definitely not the right time to sell. While valuations may be down, there are many creative ways of structuring deals that may not affect your end proceeds much.
Therefore, if you are a business owner looking to sell, do not avoid doing so due to market conditions. While current market conditions might require a more nuanced approach, the directors at Orion Capital Group have the experience to help you weather these current changes.
If you would like to learn more about Orion Capital Group, please contact us by your prefered means. Any mode of communication is held strictly confidential.
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