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Investment theses modelling for Market-leading EaaS provider

To help scale the business and expand its reach beyond core markets and adjacent energy management revenue streams.

Sector:

Fleet operator

Client:

US-bus operator

Lead:

Joint Kearney-EV8 project

Path

Situation

  • Client is a pioneer in the nascent EVaaS (Electric Vehicles as a Service) market in North America, focused mostly on publicly-owned fleets in the bus/ truck asset categories
  • Client’s investors were looking to bring in an additional investor(s) to help scale the business and expand its reach beyond core markets and adjacent energy management revenue streams (e.g., V2G, EV lifecycle)
  • Kearney was engaged to develop a report on the Target and its operating environment (market, competition, regulation, etc.) to help attract investment

Approach:

We assessed the Target’s growth potential and risks:

  • Industry structure & dynamics (fast growing movement of EVSBs from ICE to EVs leveraging EVSB / EVVos & V2G market sizing)
  • Customer needs (adoption rate & challenges)
  • Competitive landscape (fragmented value chain)
  • Durable competitive advantage (only player with holistic approach to electrification)

The assessment was run using a wealth of internal expertise, 3rd party sources/ reports, market survey with 200+ respondents, and Target performance data.

} Path

Output/Impact

  • Prepared compelling investment thesis that outlines the Target’s right-to-win in a nascent but growing market
  • Identified key market trends and outlined their impact on future growth opportunities
  • Assessed customer stickiness through in-depth customer interviews and contract evaluation
  • Highlighted key risks and potential disruptions to the business case
  • Participated in bidder conversations on thesis