This week on NVTC’s blog, Michael Canes, senior consultant at LMI, shares why smart energy usage fundamentally improves the way companies do business, and the five steps agencies can take to help their energy management.

energy

Today’s government facility energy managers face the enormous challenge of meeting goals set through legislation and executive order (EO). For the past several years, managers have needed to increase the energy efficiency of buildings by 3 percent annually. But now, agencies also must utilize increasing proportions of renewable energy, 30 percent or more by 2025.

Meeting these benchmarks is necessary to comply with legislation, or EOs, but progressive agencies know that smart energy usage fundamentally improves the way they do business. Operating more efficiently increases program effectiveness.

We follow a five-step approach to help agencies improve energy management:

1. Assess current energy consumption
2. Identify opportunities to improve efficiency and add renewables
3. Analyze the economics of the alternatives
4. Budget and manage the finances of energy investments
5. Ensure the investments are in compliance with applicable environmental standards.

We analyzed alternate means to curb fuel consumption for the U.S. military’s theater of operation, reducing resources needed to supply fuel over hundreds of miles of terrain. Energy efficiency freed up vital resources to be used for other mission-oriented purposes, creating savings in fuel, equipment, and manpower; and increasing operational effectiveness.We currently are working with the Facilities Management and Engineering Directorate at U.S. Customs and Border Protection to provide consistent, up-to-date guidance on how to mesh legal mandates with Leadership in Energy and Environmental Design (LEED) standards to assure sustainability measures are of value to the government.The Office of Management and Budget (OMB) publishes an annual energy scorecard detailing federal agencies’ progress towards federal benchmarks. The most recent report shows that, while some agencies are progressing, others are lagging behind. The challenge to gain greater energy efficiency can be met, but it requires thorough assessment, a detailed plan of attack, and continuous implementation efforts.For more information, check out LMI’s book A Federal Leader’s Guide to Energy Efficiency & Renewable Energy (EERE), which equips federal leaders with a succinct guide to specific energy issues in the federal government—the nation’s largest consumer of energy.

Michael Canes, PhD, is an internationally recognized economist with an extensive background in the economics of energy and climate policy. He has published a number of studies related to energy economics and policy. His PhD in economics is from the University of California, Los Angeles.

 

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3 Reasons Why M&A Will Continue to Thrive in 2015

February 17th, 2015 | Posted by Sarah Jones in Guest Blogs | Member Blog Posts - (Comments Off)

This week on NVTC’s blog, guest blogger Gretchen Guandolo of member company Clearsight Advisors discusses the success of M&A in 2014 with the return of gargantuan deals, largely seller-friendly transaction structures and premium valuations, and offers three reasons why 2015 will be just as successful.


dollar-exchange-rate-544949_1280In what was widely considered a banner year for M&A, 2014 was the return of gargantuan deals, largely seller-friendly transaction structures and premium valuations. In spite of the turbulent equity markets being driven by fluctuating oil prices, a gathering storm in Europe, and uncertainty around rising interest rates, we at Clearsight are already seeing the makings of a very big M&A year. Globally, investment banks are seeing increased deal flow and expanding pipelines. Our team is already out to market with several deals that are garnering high demand and premium valuations from a number of unique buyer groups. We expect the rising M&A tide to continue through 2015, as we believe demand for niche leadership positioning, strong growth trajectories, and seasoned management teams is unlikely to dissipate. First, a few fun facts from 2014 that will continue the momentum through 2015:

  • In 2014 there was $3.5 trillion worth of global M&A activity, which is up 47 percent from the year before
  • Global private equity investments totaled at $561.9 billion. That’s the highest figure since 2007, and a 43 percent bump over 2013 – with 60 percent of 2014 buyout activity focused on add-on investments
  • Venture capitalists disbursed a massive $87.8 billion (compared to $50.3 billion for 2013) via 7,731 deals
  • Companies raised around $249 billion in global IPOs in 2014, which was the busiest year for new listings since 2010

So what do we expect for this year?

  • There is likely to be a frenzy of activity in certain verticals, including: healthcare, energy and technology. Technology continues apace with no sign of slowdown and while the energy sector is harder to predict, one thing is clear – disruption in a regulated industry makes for a great M&A environment
  • Investor interest in certain technologies is likely to grow. Some of our favorites include: customer experience, big data, and human capital management. Technologies that enable us to get into the minds of customers and lead them on a journey to experience and buy a product has become the goal of retailers, financial services companies and even government! We see the market of big data continue to evolve and mature. This year will be a great growth year for data analytics consulting businesses who leverage Hadoop and other open source technologies to deliver predictive behavior, lower costs and drive increased revenue. Human capital technologies will continue to surge as employers seek out the best talent and retain and train individuals in a hyper competitive market.
  • As seen in 2014, both private equity and strategic acquirers will drive robust market competition. Nearly all of our processes include both strategic and financial buyers and as private equity grows increasingly aggressive in pricing in an effort to put money to work, we see strategic buyers dominating 2015.

Growth will continue to be the main driver of valuations throughout 2015. Premium multiples go to the companies with a demonstrated high growth track record and robust pipeline for future growth. Growth eclipses profitability through 2015.

 

 

 

 

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