Situation
A consortium of investors including a major European DFI and a European family office were contemplating a US$ 15M investment into a rapidly scaling off-grid energy business in West Africa with a combination of debt and mezzanine financing to fund its expansion into multiple West African countries. OCA was engaged by the investors to perform commercial and operational due diligence on the target to evaluate the risks of such an investment and inform their investment decision.
Our Process
OCA supported the investors by:
- Reviewing the off-grid company’s investor materials, board meeting notes, historic financials and other documentation
- Conducting comprehensive site visits of the company’s West African operations and holding consultations with management, employees, customers, regulators and suppliers
- Performing desk research, developing a market sizing model and unit economic analysis
- Developing an investor due diligence report analyzing the company’s financials and assessing its sourcing & supply chain, sales & distribution approach and customer experience, conducting a market sizing and reviewing the company’s credit processes, and historical financials and projections
The investors used the due diligence materials as a core decision tool for their respective investment committees and received approval for the investment. The consortium of investors ultimately made an investment of over US$ 15M of senior secured debt and mezzanine financing to fund country expansion and customer receivables growth.
