Uncovering actionable deal opportunities for private equity, venture capital, angel investors, and investment bankers by reading the data, not the rumors. Highlighting 10 companies that have a high likelihood of being “in-market” for a transaction.
Pay close attention to the “Keywords of Interest” – these are terms the company is actively searching at 2x – 3x their normal baseline rate.
Previous Predictive Deal Issues:
Week of July 31, 2020 Week of July 24, 2020 Week of July 17, 2020 Week of June 29, 2020 Week of June 19, 2020SolarMax Technology
Riverside, California, United States
Company Summary
SolarMax Technology, Inc. offers full-service solar integration solutions for residential and commercial customers throughout Southern California.
SolarMax’s services including design, procurement, permitting, build-out, grid connection, financing, financing referrals, warranty and customer satisfaction activities.| Key Data Points | |
|---|---|
| Founded | 2008 |
| Headcount | 95 |
| Funding to Date | $19.5M |
| Last Round | 2016 |
| Last Round of Investors | Undisclosed |
| Estimated Revenue | $89.8M |
| CEO | David Hsu |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
SolarMax is based in Southern California, but he majority of its business is in Chinese solar projects. This was a good business until earlier this year, and the company was preparing for a listing on the NASDAQ, S1 prospectecus for SolarMax here, and then obviously with COVID, the most business has most likely been significantly impaired.
The team is impressive, Chinese solar will come back, and the company pointing its considerable resources to domestic / other markets could be interesting. The company has at least $20M in outside capital who are probably looking for liquidity. With the right work-out group, maybe opportunity to partner with management as it readjusts to new realities.Potential Mandates
- For Opportunistic Funds (this could span venture, PE, Family Office, Special Situations): Opportunity to take a controlling stake on preferential terms with a strong mangement team who’s business challenges are outside of their control.
- For I-Bankers: Advisory work sourcing interim capital as the company solidifies direction, and / or find right buyer.
- Strategics: Company has very strong Chinese market relationships and projects, that market will come back, with the right balance sheet this could be an opportune time to buy.
Solcius
Provo, Utah, United States
Company Summary
Solcius designs, delivers, installs and services residential solar solutions. Solcius offers both power purchase agreements and leases, with guaranteed rates for up to 25 years. Purchase options are also provided to customers wishing to own their solar energy systems.
| Key Data Points | |
|---|---|
| Founded | 2013 |
| Headcount | 194 |
| Funding to Date | NA |
| Last Round | NA |
| Last Round of Investors | NA |
| Estimated Revenue | $4.4M |
| CEO | Kelly Walker |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
In the last year, Solcius has expanded operations to Wisconsin and New York. The firm could be exploring is a roll-up via M&A to advance the team building and business development process. As a residential solar company, having a solid customer base is much needed. It is a challenge for a new company to grow organically because of the competitive landscape. Unless Solcius can come in below market value on costs, it will have a tough time acquiring customers and thus could be seeking smaller firms with a strong foothold in the markets they look to enter.
Potential Mandates
- For Venture Funds: Potential exit of a portfolio company that could be a strategic investment for Solcius
- For I-Bankers: Advisory work in buy-side M&A for Solcius or Solcius as a taker for sell-side residential mandates
- Strategics: Solcius may be open to strategic investments from groups with low customer acquisition costs or partnerships with solar lead groups
Haleakala Solar
Kahului, Hawaii, United States
Company Summary
Haleakala Solar specializes in solar panel installation and servicing of solar PV and solar water heaters for homes and businesses in Hawaii – on the islands of Oahu, Maui, Big Island, and Kauai.
| Key Data Points | |
|---|---|
| Founded | 1977 |
| Headcount | 60 |
| Funding to Date | NA |
| Last Round | 2018 |
| Last Round of Investors | Acquired by PetersenDean Roofing & Solar |
| Estimated Revenue | $4M |
| CEO | James Whitcomb |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
Haleakala is not part of the group of affiliates that is filing for Chapter 11. PetersenDean, Beachhead Roofing & Supply, California Equipment Leasing Association, Fences4America, Roofs 4 America, Solar 4 America, Tri Valley Supply and TD Venture Fund are the debtors related to this filing.
PetersenDean has temporarily suspended quotes for Solar, Energy Storage, Fencing and HVAC, but is keeping the roofing business in operation. As the company moves forward, this may be their strategy to have a successful Chapter 11. The firm may be selling off its non-core businesses (anything outside roofing) in an effort to raise enough cash to allow for a Chapter 11 to be approved. This could be a strong opportunity for residential solar companies to expand into the Hawaiian market.Potential Mandates
- For PE Funds: Potential acquisition of Haleakala to roll-up residential solar
- For I-Bankers: Potential advisory in the sell of Haleakala or on the buy-side for a group looking to roll-up residential
- Strategics: Ideally does deal with residential solar, based off current events with other strategics
Ecogy Energy
Brooklyn, New York, United States
Company Summary
Ecogy Energy is a solar development company that provides end-to-end project support for distributed-generation solar projects, including system design, construction, finance, permitting, and maintenance. They have developed and own a portfolio of distributed generation solar projects around the US.
| Key Data Points | |
|---|---|
| Founded | 2010 |
| Headcount | 18 |
| Funding to Date | NA |
| Last Round | 2015 |
| Last Round of Investors | ACRE, NYU Future Labs |
| Estimated Revenue | NA |
| CEO | John Bertuzzi |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
Ecogy specializes in finance, development, and AMS, but contracts local construction firms for the permitting and planning process. With the team and platform to provide the development and AMS needs, the firm is likey looking for financing support.
Ecogy was co-founded by the founders of JB Solar LLC and Becker Capital and Finance. John Bertuzzi and Ken Becker likely spun the two together to create Ecogy – with the motive to create a platform to support local solar adoption via financing solutions. Without knowing the full relationship status of the organizations, it does draw suspicion that energy capital is on their watchlist. To be frank, it could be a screen of competitors. But, it could also signal a need for a new financing partner. Perhaps one of the partners is pulling out.Potential Mandates
- For Institutional Investors: Supplying a line of credit to Ecogy to provide the group with a source of capital to undertake more projects
- Strategics: Strategic financing partners, potentially good fit for family office or other group that would have a close relationship and provide favorable terms.
- PE Firms: Acquisition of current portfolio to provide capital to the team or investment into Ecogy to fund future projects
Clean Energy Experts
Manhattan Beach, California, United States
Company Summary
Clean Energy Experts provides real-time customer leads, appointments, performance marketing and software solutions to solar, energy, and home improvement companies. Clients can access the single largest volume of pre-qualified solar leads in the U.S.A. in the bid marketplace.
| Key Data Points | |
|---|---|
| Founded | 2009 |
| Headcount | 19 |
| Funding to Date | NA |
| Last Round | 2015 |
| Last Round of Investors | Sunrun |
| Estimated Revenue | $15.7M |
| CEO | NA |
Intent to Transact Score
Keywords of Interest
Ancillary Signals
Our Take
There were a few companies like this that were acquired years ago. For example, Brighcurrent was bought by Sungevity in 2018. It seems that this model is becoming outdated and solar companies are continuing to lower CAC organically over the years. Also, other business models are generating warmer leads and directing them directly to companies via partnerships. But, this platform could have the opportunity to be deployed in markets outside of the US as their residential markets grow.
Vivint also greatly reduced Sunrun’s CAC, a signal that might encourage an exit with clean energy. CleanEnergy may be underperforming relative to its counterparts and Sunrun could be looking for a cash sale. A target could be a warmer lead generation group that can leverage the tech and/or the leads that haven’t closed. As mentioned before, the company could also be deployed in less mature where Sunrun doesn’ have a strategic focus.Potential Mandates
- For PE Funds: Potential acquisition, if performance is solid
- For I-Bankers: Sell-side advisory work on an M&A deal
- Strategics: Could be open to a strategic investor looking to leverage the tech/customer base of the group. Best for fit new generation lead models or groups looking to use the platform to develop leads in untapped markets.
Wow that was odd. I just wrote an very long comment but after I clicked
submit my comment didn’t appear. Grrrr… well I’m not writing all that
over again. Regardless, just wanted to say fantastic blog!