Case Study: Commercial Due Diligence, Cleantech

Our client wanted to evaluate an investment in a Chinese environmental engineering company.

Case Study: Commercial Due Diligence, Cleantech

Our client wanted to evaluate an investment in a Chinese environmental engineering company.

Contact us


  • China focused private equity firm evaluating investment in a Chinese engineering company providing clean coal technologies (the ‘Target’).
  • Target seeking funds to commercialize IPR-protected technology.
  • Success depended on ability to compete with dominant technology which already had a 91% market share.
  • An individual involved in the development of the Target’s technology was offering competing solutions raising questions about the value of the Target’s IPR.


Identified key issues, including:

  • Industry and market segment attractiveness
  • Competitiveness of Target’s technology
  • Suitability of strategy
  • Achievability of financial forecast
  • Ability to enforce IPR

Our research and analysis included:

  • In-depth management interviews and site visits.
  • Interviews all along the Target’s value chain to obtain exclusive information.
  • Interviews and discussions with independent industry experts and influencers.
  • Detailed analysis of expected customer acceptance of the Target’s offering.
  • Obtaining expert estimates about future end-user compliance with emission guidelines (key driver of demand).
  • Analysis of government and industry statistics.
  • Creating financial forecast based on realistic assumptions to support the client’s return analysis.


  • Analysis revealed that the dominant technology was more competitive in an environment of low compliance with environmental regulations.
  • We concluded that stricter enforcement would significantly increase the competitiveness of the Target’s technology due to lower total cost.
  • Recommended Target to initiate IPR infringement case which it later won
  • The client invested in the Target at a favorable entry multiple.
  • The Target – now the market leader in its niche – is on track for a domestic IPO.

Team member comment:

“Given that the technology was unproven, investigating customer acceptance was key. The fact that customer acceptance depended on so many different variables made this a challenge. For example, a power plant operator burning high-sulfur content coal would benefit more from using the Target’s technology than an operator burning low sulfur coal. There was a whole range of these variables, some more easily quantifiable than others. In the end, a combination of interviews with existing and potential customers and analyzing total cost of ownership gave us the answer.”

Our Clients

Client Services

Our advisory services support clients when selling or buying a business, establishing joint ventures and partnerships, securing financing, valuing a business, or navigating other M&A related issues involving China and Southeast Asia.


Sell-side Advisory

We manage global sales processes to help clients secure maximum value when selling a company or divesting a business.

Buy-side Advisory

We help client identify, screen, initiate, and convert acquisitions that are synergistic with their strategies.

Strategic Advisory

We provide strategic advisory services that help clients define the best path before launching specific M&A initiatives.


We help clients identify and structure joint ventures, strategic partnerships, corporate venturing models, minority stakes, etc.

How can we help you?