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Smoke and Mirrors

Have you been burned in a business deal? Did that deal go wrong due to persons or personalities who turned out not to be as represented?

Orchid Group’s client was offered a potential international renewable energy project partnership in Asia and a construction contract worth multi-millions (USD). We advised they first conduct a 360° due diligence, check out and confirm the track records and reputations of the main principals pitching development rights to the renewable energy project.

The deal structure involved companies, investors, and connections in 4 countries on 3 continents and 3 languages (English, Chinese, Arabic). Timing? ASAP, of course. With our business sensible, legal sharp, multi-cultural team with proprietary tools and method, we delivered our 360° due diligence findings in a matter of days to the client. Bottom line, the management team for the developer of the project were not “as advertised.” Proof that it makes perfect sense to really “know your customer” (or partner as in this case) before deciding on a set course and investing precious capital, time, and resources.

We helped the client focus on the real versus theoretical risks that prevent success. Our report to the client delivered the facts and truths, separated from the pitch and gloss. We take technology, access data, and analyze it for better and smarter decisions and increasing probability of successful deals by avoiding failures and relationships that are not going to work.

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Sample Assignments: Connections and Networks

Background: Orchid advised several organizations and institutions regarding promotion of cooperation and investment with American companies, and education on the USA oil and gas supply and value chain: Ministry of Economic Affairs, Industrial Research Technology Institute, Taiwan-USA Industrial Cooperation Promotion Office, Taiwan Business Weekly.

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Sample Assignments: 360º Due Diligence

Background: Orchid’s investigation on business partners, active diligence on claims of development status and projects assets led clients to evaluate realistic outcomes of investment and entering into purchase agreements.

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Sample Assignment: Critical Industries

Background: A private PRC brand name company in the Chinese electronics industry hired Orchid to assist on securing USPTO patents and advise on international market entry in USA, Europe, Japan, and Korea. Prior to hiring Orchid, the client interviewed major law firms in China and USA for IP work, however, was unable to progress for several reasons.

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Sample Assignments: Renewable Energy

Background: Orchid represented major Asian wind turbine manufacturers and development companies on multiple assignments in Asia, USA, and Europe. Check out Orchid Group Services. Our roles range from legal and regulatory adviser to helping clients find the right partner or investor, projects, and site locations.

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Sample Assignments: Power (LNG)

Background: Our experience in LNG covers decades working with companies in USA, Korea, China, Japan, and Taiwan in multiple roles. Orchid Group are experts on work such as market studies and LNG analysis. In addition, we represented multinational corporations on investment in LNG liquefaction projects and securing access to the China LNG market.

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Sample Assignment: Power (SK E&C)

Background: SK E&C hired Orchid to lead commercial and legal due diligence on the potential acquisition of 100% membership interests in two greenfield combined cycle power plants in ERCOT.

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Sample Assignment: Power (KOSEP)

kosep

Background: Korea South-East Power Co. (“KOSEP”) was considering the acquisition of a greenfield CCGT project in Pennsylvania within the PJM market and hired Korea Ratings (“KR”) to assess the feasibility of the project. On behalf of KOSEP, KR hired Orchid to lead due diligence from on the ground.

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Case Study: #2 Commercial Advisory

xemc

Background: Chinese wind turbine manufacturer, XEMC, approached Orchid to advise it on a brownfield wind power project in California that the firm was considering purchasing and re-powering with its own turbines.

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Case Study: #1 Commercial Advisory

kosep

Background: Korea South-East Power Co. (“KOSEP”) was considering the acquisition of a greenfield CCGT project in Pennsylvania within the PJM market and hired Korea Ratings (“KR”) to assess the feasibility of the project. On behalf of KOSEP, KR hired Orchid to lead due diligence from on the ground.

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Case Study: #2 Market Research

Background: The Electricity Generating Public Company Limited wished to bid on the sale of a 49% stake in an 1800 MW CCGT in South Korea and needed an adviser to forecast power market prices and advise on issues related to LNG supply agreements and a terminal use agreement.

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Case Study: #1 Market Research

Background: A confidential client was required by the lenders to two of its gas-fired power projects to demonstrate the competitiveness of its LNG supply agreements. Orchid Group was engaged to conduct the study.

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Case Study: Deal Origination

Background: Energy Initiative Japan (EIJ), a Japanese developer of solar projects hired Orchid to lead the sale of a portfolio of greenfield solar projects developed under the Feed-in-Tariff (FIT) established under the “Act on Special Measures Concerning the Procurement of Renewable Electrical Energy by Operators of Electric Utilities” in Japan.

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Case Study: Strategy Consulting

doosan

Background: Doosan Heavy Industries (DHI) was eyeing the United States as their key market for selling wind turbines, but wanted to understand whether they could compete there, what models were most competitive the logistical network required for them to compete in the USA. They hired Orchid to help them work through developing market entry strategy.

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Orchid provided DHI with a comprehensive package complete with strategic options for entering the USA.

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