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Strategy

Energy companies often need an adviser with in-depth understanding of asset values, market fundamentals, structuring alternatives and the regulatory environment. Energy professionals from FTI Consulting and its subsidiary, Compass Lexecon provide the strategy, due diligence and management services to meet these needs.

Our Service Offerings

Market Entry

When an energy company or an investor plans to enter into a new market, or wants to expand in a market, key factors need to be evaluated — the competitive landscape, the regulatory environment, location evaluation and selection, buying or acquiring new licenses, identifying and engaging with local partners for services, establishing product pricing, etc. — and strategic decisions made. Clients engage us because, unlike many other consulting firms, FTI Consulting and its subsidiary, Compass Lexecon have dedicated energy experts who provide a unique and holistic perspective to maximise value for clients. These professionals understand the entire transaction lifecycle and are focused on ensuring that our clients succeed. We work thoroughly to ensure that there are no red flags in a new market entry, and if there are red flags, we understand how red they are.

Market Exit

The Energy professionals at FTI Consulting and its subsidiary, Compass Lexecon are highly experienced in helping energy companies develop a successful strategy for exiting a market and implementing that strategy for the greatest return. This includes current and future sales analysis, current and future potential profitability analysis, market conditions, regulatory conditions, competitive conditions, etc. We also provide analysis on the preferred way to exit a market — external sale, spin-off, or sale to employees.

Upstream / Downstream Integration

Translating the concept of upstream/downstream integration into a viable business strategy can be challenging. The advantages may be enticing — economies of scale and lower production costs. But the challenges may be formidable — market sizing, competitiveness, and regulatory issues. The Energy professionals at FTI Consulting and its subsidiary, Compass Lexecon are highly experienced in developing integration strategic plans and implementation that incorporates key components, such as systems integration, data integration, personnel integration, etc.

Portfolio Optimisation

Wholesale companies that own a portfolio of energy producing properties — gas powered electric plants, nuclear plants, solar farms or wind farms — may have difficulty determining when to produce power from each to maximise revenues. The Energy professionals at FTI Consulting and its subsidiary, Compass Lexecon leverage their wide experience to align business planning, organisation and management with the underlying goal of achieving improved profit performance.

Auction Bidding/Strategy

As a potential buyer or seller of a network asset, bidding is key to achieving a successful outcome. Many companies are not as adept as they should be in making an offer and supporting it. FTI Consulting and its subsidiary, Compass Lexecon can help. Beyond the obligatory regulatory and commercial due diligence, our Energy professionals do sophisticated financial modelling to provide the most advantageous go/no go financial guidance and bidding strategies.

Regulatory Negotiation

Wholesale energy companies often have to develop strategies to shape and inform the political and policy environment, as well as engage key legislative, regulatory and executive decision makers on matters that include tax, trade, labour and regulatory oversight. FTI Consulting and its subsidiary, Compass Lexecon Energy professionals, some of whom have worked for the regulators and the European Commission, work to protect clients’ political and policy interests. We provide up-to-the-minute intelligence and assessments of policy and political directions, developing and implementing issue campaigns and legislative and regulatory mitigation strategies. We also serve as expert witnesses in these efforts.

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