Solar M&A Advisory | Strategic Sell-Side Representation for Canadian Renewable Energy Companies

Institutional-Grade M&A Advisory for Canada’s Solar Energy Sector

Windsor Drake is a Canadian mergers and acquisitions (M&A) advisory firm offering full-service, sell-side representation to privately held solar energy companies. With offices in Toronto and Halifax, we serve founders, independent power producers (IPPs), EPC contractors, and renewable energy developers across Canada preparing for strategic exits, recapitalizations, or investor-led transitions.

We combine the execution standards of global investment banks with sector-specific expertise in renewable infrastructure. Whether your business focuses on utility-scale solar, commercial rooftop installations, O&M services, or distributed energy systems, Windsor Drake delivers the valuation strategy, buyer access, and process control required to achieve a successful transaction.

Why Solar Companies Are a Prime Target for M&A

Solar energy has become a core focus of institutional capital and corporate acquirers. Canada’s climate goals, rising demand for clean electricity, and supportive government policies have created a long-term investment tailwind for the sector. Key drivers of M&A include:

  • Consolidation by IPPs and energy-as-a-service providers

  • Infrastructure funds seeking long-life renewable assets

  • Private equity investment in distributed solar and storage

  • Corporate demand for on-site solar to meet ESG goals

According to Natural Resources Canada (https://www.nrcan.gc.ca/) and the Canadian Renewable Energy Association (https://renewablesassociation.ca/), installed solar capacity in Canada is growing rapidly, with Ontario, Alberta, and Atlantic Canada seeing the most aggressive expansion. Owners of platform-scale solar businesses with revenue visibility and technical capability are commanding premium valuations.

What Is Solar M&A Advisory?

Solar M&A advisory involves the structured sale, merger, or recapitalization of solar developers, operators, or service providers. Windsor Drake manages every phase of the sell-side M&A process:

  • Exit strategy planning and shareholder alignment

  • Business valuation using market comps, PPA metrics, and infrastructure modeling

  • Development of institutional-grade marketing materials

  • Discreet buyer engagement and qualification

  • Term sheet negotiation and deal structuring

  • Full coordination of diligence and legal documentation through closing

We serve as the lead advisor, managing investor dynamics while protecting confidentiality and deal certainty.

Who We Advise

Windsor Drake advises a diverse range of companies in the solar ecosystem:

  • EPC and design-build solar contractors

  • Utility-scale solar project developers and asset owners

  • Commercial rooftop solar installation firms

  • Community solar and net metering platforms

  • O&M (operations and maintenance) providers

  • Battery storage and hybrid solar integration companies

Typical client profile:

  • $5M–$100M in revenue

  • $1M–$10M in adjusted EBITDA

  • Permitted or operational project assets under management

  • Engineering, project management, or proprietary technical capabilities

  • Clean corporate structure with clear revenue contracts or pipelines

Clients include founder-owned companies, family operators, and investor-backed entities preparing for growth capital or exit.

Windsor Drake’s Solar M&A Process

1. Strategic Planning and Exit Readiness

We begin with a strategic session to understand:

  • Ownership structure and liquidity goals

  • Revenue model (project buildout, recurring O&M, asset cash flow)

  • Corporate development pipeline and backlog

  • Regulatory, interconnection, or permitting status

We then craft a go-to-market roadmap, including tax and legal structuring in partnership with your advisors.

2. Valuation and Positioning

We develop a defensible valuation based on:

  • Normalized EBITDA and contracted revenue streams

  • Discounted cash flow analysis of solar project portfolios

  • Renewable infrastructure comps and precedent transactions

  • Project lifecycle, capacity factor, and energy yield modeling

Our positioning strategy includes:

  • Investment-grade Confidential Information Memorandum (CIM)

  • Adjusted financial model with project-specific cash flows

  • Buyer list segmented by infrastructure funds, IPPs, and strategics

  • Environmental and technical data room preparation

3. Targeted Buyer Outreach

We run a controlled, NDA-protected outreach process targeting:

  • Infrastructure investors and yieldcos seeking long-duration assets

  • Strategic acquirers in renewables and energy transition

  • Canadian and global utilities building net-zero portfolios

  • Clean energy-focused private equity and ESG funds

Buyers are pre-qualified for transaction history, technical fit, and alignment with seller objectives. Sellers retain full control over disclosure timing and process pacing.

4. Term Sheet Negotiation and Deal Structuring

We coordinate the solicitation and negotiation of Letters of Intent (LOIs), structuring across:

  • Enterprise value and valuation methodology

  • Equity rollover, milestone payments, or retained interest

  • Asset vs. share transaction structure and tax optimization

  • Regulatory approvals, project-specific diligence, and PPA transfer terms

Our role is to maintain competitive tension and ensure structure reflects both risk and long-term upside.

5. Due Diligence and Closing

Windsor Drake manages all diligence workflows, including:

  • Engineering reports and technical feasibility studies

  • Financial modeling, PPA reviews, and interconnection documents

  • Tax, legal, and environmental compliance

  • Real estate, equipment, and lease/land rights validation

We work closely with your advisors to ensure a smooth transaction, maintaining deal momentum through final signing and funds flow.

Key Valuation Drivers in Solar M&A

Solar businesses are evaluated based on:

  • EBITDA stability and recurring cash flow

  • Contracted revenue (PPAs, leases, service contracts)

  • MWs installed or under development

  • Technical capabilities and execution track record

  • Equipment procurement and cost structure

  • Regulatory and interconnection risk profile

Valuation multiples:

  • 6x–8x EBITDA for EPC firms with stable build volume

  • 7x–9x EBITDA for O&M providers or distributed energy platforms

  • 10x–12x+ for asset-rich companies with cash-flowing project portfolios

Market Trends in Solar M&A

  • Consolidation among EPCs and solar contractors

  • Vertical integration between solar, storage, and EV infrastructure

  • Infrastructure funds seeking yield from long-term contracted assets

  • ESG-mandated capital flowing into renewable platforms

  • Acceleration of C&I (commercial and industrial) solar adoption

Windsor Drake tracks M&A activity, buyer mandates, and capital flows across the Canadian renewable energy market.

Why Windsor Drake

  • Sector Specialization: We understand solar development, project finance, and energy asset valuation

  • Buyer Access: Deep relationships with institutional capital, infrastructure funds, and strategic acquirers

  • Full-Process Execution: We manage strategy, positioning, negotiations, diligence, and closing

  • Institutional Rigor: All materials and processes meet global investment banking standards

  • Confidential Advisory: We act exclusively for sellers, running private, seller-controlled transactions

Legal and Tax Considerations

Selling a solar energy business requires diligence around:

  • CRA tax strategy and LCGE planning

  • Asset vs. share transaction structure

  • Environmental assessments and permitting

  • Transfer of PPAs, interconnection rights, and land leases

  • Change-of-control implications with counterparties

Windsor Drake coordinates with your tax, legal, and environmental advisors—or introduces sector-specific experts—to ensure risk is managed and net proceeds are optimized.

Reference: https://www.canada.ca/en/revenue-agency/services/tax/businesses.html

FAQs

Do buyers prefer shares or assets?
It depends on regulatory status, project ownership, and tax efficiency. We assess both structures.

What if we don’t own the project assets?
We advise both asset owners and EPC/O&M service providers. Transaction strategy depends on your model.

How are solar project portfolios valued?
Based on discounted project cash flows, PPA terms, and asset lifecycle.

Can I keep a minority interest?
Yes. We regularly structure partial exits or equity rollovers for founders.

What if I need growth capital, not a full exit?
We also advise on minority recapitalizations and capital raises.

Begin the Conversation

If you are a solar developer, contractor, or energy services provider considering a sale or recapitalization, Windsor Drake delivers the process, positioning, and access needed to secure an exceptional transaction.

We help:

  • Maximize valuation through strategic buyer engagement

  • Structure transactions to align with energy transition trends

  • Manage the full sell-side M&A process from strategy to close

Windsor Drake | M&A Advisory for Canada’s Solar and Renewable Energy Sector

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