First-Half U.S. Greentech M&A Edges Up 8%

July 26, 2011 - PRLog -- Despite facing a sluggish economy and continued uncertainty surrounding U.S. energy policy, U.S. greentech M&A grew to $8.8 billion in the first half of 2011—8% higher than in the first half of 2010. Deal volume, however, declined 4% to 187 transactions during the same time period. Meanwhile, valuations proved less resilient as revenue multiples for publicly-traded cleantech companies plummeted from 2.9x to 1.9x in the span of six months. Cleantech valuations fell as investors focused more on the lack of short-term profitability than the long-term growth potential of the sector.

Although first half numbers show stabilization, if not modest growth, in U.S. greentech M&A activity, further examination reveals a more complex outlook for the sector. The paralysis and cyclical shifts that have plagued U.S. energy policy have dampened investor sentiment while feared cuts in cleantech subsidies threaten to slow growth and innovation. Pessimism was reflected in the venture capital community, where capital raises dropped 12% from the same period last year. This cynicism was also reflected in the stock market, where the PowerShares Clean Energy ETF fell 13.4% in a first half that saw the broader S&P 500 rise 5.0%.

For a comprehensive analysis of the greentech M&A environment in the first half of 2011, download the complete report from Peachtree Capital Advisors at http://peachtreecapitaladvisors.com.

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Peachtree Capital Advisors, Inc. is a New York-based investment bank providing M&A advisory services to growth and middle market companies in the technology, digital media, and cleantech sectors.