Cleantech M&A on the rise, according to German venture capital firm Ventizz Capital Partners

24 September 2009

Despite the financial and economic crisis, the market for M&A transactions in the cleantech sector is characterised by relentless dynamism, according to a study commissioned by German venture capital firm Ventizz Capital Partners.

The sector is characterised by a stable number of transaction enquiries, high potential purchase prices, and a growing need by cleantech companies for capital according to the report, Private Equity Investments in Clean Tech.

Carried out by Wiesbaden University of Applied Technology, the study surveyed 62 professionals, including M&A experts, corporate finance consultants and investment bankers between April and May 2009, finding strong investor interest in cleantech. Around 50 per cent of participants reported that the number of enquiries in the first quarter of 2009 was the same as in the same period last year, or even that it had increased. Purchase prices remained high, with multiples of between 4.8 and 9.2 in terms of EBITDA.

Professionals surveyed believe that there will be an upswing in sector interest as early as 2010, driven by scarcity of natural resources and state intervention in the form of government programs or subsidies, while experts expressed a belief that green energy firms, such as solar, wind and energy efficiency companies, will be future winners.

Dr Helmut Vorndran, CEO of Ventizz Capital Partners, said, ‘The participants highlighted financial bottlenecks as being the largest stumbling block for further growth in the clean tech sector, and this is in line with our experience. Cleantech could grow much faster if it had better access to financing. Especially given current environment, the private equity sector can make a positive contribution in this segment by providing capital.’

When questioned on the criteria that sellers use when deciding to sell their companies, participants stated that the purchase price was the most important single factor, as well as quality-based characteristics on the part of the investor, such as their track record or management’s knowledge of the market.

Vorndran added, ‘In future-proof industries such as cleantech in particular, intelligent capital and competent investors are must-haves for successful company growth. That means that money is not the sole deciding factor on who wins the bidding.’

Helmut Vorndran established Ventizz Capital Partners in 2000 with Reinhard Löchner with the intention of focusing on mature technology-oriented high growth companies. In July, the firm merged portfolio companies CardFactor and AEM Technologies Holding to create a single provider of data carriers and computers with integrated security electronics called AEM Technologies Holding.

Read full report here (German version).

Copyright © 2009 NewNet

This story was published on Thursday, September 24th, 2009 at 9:36 am and is filed under Europe, companies, knowledge. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Cleantech M&A on the rise, according to German venture capital firm Ventizz Capital Partners”

1. M&A says:

   25 September 2009 at 7:21 pm

   This is excellent news as M&A activity results in companies with the size necessary to make a genuine impact on the market.

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