The Wild West
Our customers often say the acquisition process for renewables is like the “Wild West.” From sourcing the right deal, to getting through exclusivity, and signing the SPA. The acquisition process is slow, complex, and expensive.
One big culprit is data verification. This can take weeks, if not months, chasing details and collecting information, slowing down the process and ultimately killing an otherwise good deal.
A rock and a hard place
Every acquisition runs into the same problem. After showing initial interest for a project, the Buyer needs to verify key details in order to make their initial valuation and submit an NBO. They ask for more data and to verify that the data is accurate — meaning they need data room access. If they can’t confirm the data, they can’t know if the project matches their mandate or assign a proper value.
But for Sellers, giving up data room access too soon can pose a risk. They may be giving access to a Buyer who isn’t serious, or even jeopardize a project in Early Stage. Neither side wants to get burned, so both sides tread carefully, resulting in a drawn out back-and-forth of email chains, excel sheets, and waiting on legal to green light an NDA. The process is painful. But it’s a fact of reality for acquisitions that each side must mitigate their perceived risks. And each side is forced into doing this every time there’s a potential match.
Why this matters
Collecting information, reviewing NDAs, and verifying key details can end up taking months, all for the project not to be a match. This doesn’t only mean wasted time and money, but also the lost opportunity of a better deal.
Your layer of trust
At arra, we work to verify every submitted project. This means getting data room access to review documentation and verify key details regarding Land, Grid, and Planning, as well as potential revenue schemes, and more. Sellers maintain confidentiality and Buyers can make offers fast with data they can trust.
Data verification ratings
Every project listed on arra receives a live data verification rating that represents the level of verification that project has received. If we haven’t seen the data room, we don’t give a rating. Most projects don’t start fully verified. But each project’s rating is live and updated regularly to ensure the most up to date representation.
At arra, we are committed to enabling fast and simple acquisitions, while maintaining the highest standards of transparency, compliance, and the privacy of our users and their data.
Want to learn more? Reach out at hello@arra.energy. Or create your free account and explore the platform here.
