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Perspectives

Power and utilities mergers and acquisitions

As forces reshape the sector, M&A opportunities arise

The power and utilities (P&U) landscape is witnessing a rapid transformation. As the industry continues to consolidate, identifying and capturing value throughout the M&A life cycle is not only important, but imperative.

Transformative shifts in power and utilities drive M&A activity

Converging industry pressures, including disruptive technologies, a need for significant investments in grid modernization, economic and regulatory uncertainties, stagnant demand growth, electricity and gas price declines relative to inflation, and shareholder demands for greater value creation make capturing value throughout the M&A life cycle imperative.

As strategic and financial investors continue evaluating market opportunities, we believe that three key questions should be considered when embarking on M&A activity:

  1. How does the sector’s transformation and M&A activity influence strategic priorities?
  2. What key capabilities and technologies are critical for the acquirer’s future success?
  3. How can M&A help unlock additional value to shareholders?
Power & Utilities Sector Evolution

Going forward

If there is anything we can expect, it is continued energy market innovations and disruption, which we believe will bring more and more diverse M&A opportunities.

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