Commercial due diligence and strategic growth option assessment on a UK energy efficiency provider

The background

A green investor with a strong commitment to sustainability sought to make a significant impact in the UK’s low carbon energy landscape. Their focus was on investing in a regional Energy Efficiency provider with the ultimate goal of transforming it into a leading national player offering turnkey energy efficiency solutions across all customer segments, including residential and non-domestic buildings.

The key question

The key question was how to retain, expand and leverage the current strengths of the target company, but also enable them to evolve into an all-encompassing energy manager that offers a wide range of energy solutions backed by a leading-edge support infrastructure (including digital platform and green finance). This strategy needed to outline clear growth pathways for short, medium, and long-term horizons while capitalising on the company’s current strengths and competencies.

What was needed

To achieve the investor’s objective, a thorough and all-encompassing strategy was necessary. This strategy aimed to analyse the dynamic energy efficiency trends in the UK market, carefully evaluating the target company’s existing capabilities while addressing any identified gaps and bridging actions required to fill them. It considered the rising importance of digitalisation and green finance as key enablers for developing innovative business models in the sector.

Our solution

LCP Delta developed a bespoke “staircase approach” to build a comprehensive growth strategy for the company. The approach entails taking small but connected steps to build capabilities over a period of time, leading to a measured and programmatic consolidation of competences, skills, assets, and relationships. LCP Delta’s process included: clear definition of goals and milestones, capabilities evaluation, assessment of new business models and finally developing short, medium and long-term growth pathways, making a revenue growth of x10 over the next 15 years.

The LCP Delta difference

Thanks to the strategic guidance provided by LCP Delta, the Energy Efficiency provider will successfully implement a growth strategy that cater to diverse customer segments, develop recurring revenue streams, build a portfolio of long-term cash generating assets and establish a strong consumer-focused presence in the UK. The transformation of a regional Energy Efficiency provider into a national energy manager in the UK stands as a testament to the power of strategic planning and sustainable investment enabled by LCP Delta.