CRA was retained by a global equity investor to conduct a due diligence of a bus transportation company in North America and develop fleet electrification options post acquisition to determine value and sustainability upsides.
We provided a detailed assessment of the market and competitive landscape, forecasts of fuel and power price, estimates for capital and operating cost, and evaluation of regulatory, contractual, and financing structures. We then developed alternative fleet electrification options, including pace of investments, and quantified the overall financial value and sustainability benefits such as emissions, pollution, and health impacts.
The CRA-developed electrification scenario resulted in a significantly higher internal rate of return for the transaction than the initial investment case and supported a higher valuation – resulting in the client eventually winning the bid for the asset.
