U.S. Greentech M&A Down 6% in 2011

A strong year for energy efficiency was overshadowed by struggles in renewable energy as the U.S. greentech M&A dips to $13.9 billion.
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Jan. 23, 2012 - PRLog -- In 2011, the U.S. greentech market witnessed the rollout of electric vehicles from Chevrolet and Nissan, the shocking demise of thin-film solar manufacturer Solyndra, and another year of stalled progress in the area of U.S. energy policy. When the dust settled, 353 transactions had been completed for a reported $13.9 billion—down 6% from the $14.7 billion posted in 2010. While greentech funding rose 4% to $10.6 billion, mergers and acquisitions slumped 29% to $3.3 billion.

Energy efficiency again enjoyed a stellar year, with electric transportation and efficient lighting technologies propelling the sector to a new high—$3.1 billion in reported transaction value. Less than 20,000 electric vehicles were sold in 2011, but that number figures to rise in 2012 as a multitude of car manufacturers prepare to release electric models.

Contrary to energy efficiency, renewable energies mostly struggled, between plummeting solar prices and uncertainty with the extension of production tax credits (PTC) for wind. Amidst these struggles, solar managed to grow 36% on the strength of follow-on investments in later-stage technologies. But with the bulk of renewable energy funding comprised of late-stage investments, future innovation in the pipeline looms as a concern.

Perhaps of even greater concern was the continued ambiguity surrounding U.S. energy policy. Although not entirely surprising, the politicalization of energy policy in Washington resulted in very little getting done. With elections arriving in 2012, this trend will likely persist for the foreseeable future.

For comprehensive analysis of the greentech M&A environment in 2011, download the 2011 Greentech M&A Review from Peachtree Capital Advisors at http://www.peachtreecapitaladvisors.com.

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Peachtree Capital Advisors, Inc. is a middle market investment bank providing M&A advisory services to the technology, digital media, and cleantech sectors.
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