Vendor due diligence of an operating wind farm for sale to private equity

Client: An established European IPP with 1+ GW of operating renewables · Sector: Wind · Mandate: Vendor due diligence

An independent power producer engaged Zelya Energy to prepare and execute a vendor due diligence (VDD) on an operating wind farm ahead of a competitive sale to private equity. The mandate covered the full data room construction, anticipated bidder questions, and reliance framework for shortlisted parties.

Well-executed vendor DD on renewable assets has become the norm in competitive auctions. It shortens deal cycles, limits price erosion during negotiation, and increases the probability of closing on seller-favourable terms.

What we did

• Reviewed technical performance, equipment condition and O&M practices
• Audited regulatory and contractual perimeter (permits, ICPE, PPA, grid connection)
• Structured the data room and supporting evidence files
• Drafted red flags memo and anticipated bidder Q&A responses
• Set up the reliance letter framework for shortlisted bidders

Result

Three private equity bidders were shortlisted and accepted reliance on the VDD report. Two of them confirmed they would not duplicate the technical due diligence, accelerating the auction by approximately six weeks. The final closing price landed within 2% of the seller's expected range, with limited price chips during the final negotiation phase.

This engagement complements our wind farm due diligence practice and our broader cross-sector energy and renewable asset due diligence services.

Preparing a wind asset for sale? Our vendor due diligence services accelerate the sale process and protect valuation.