Issue:
The CEO of a large manufacturing company asked Nerac to provide an opinion on the advisability of engaging in a joint venture with a company in the field of concentrated photovoltaics (CPV). One of the key issues for the client was the technical feasibility and market outlook for the underlying CPV technology being given consideration.
Analyst Approach:
Nerac’s analysis of the technology and market factors demonstrated that the technical application being considered was not sufficiently proven to warrant investment at the time. Furthermore, the market for this application was unformed and highly speculative.
Client Benefit:
Based in part on Nerac’s advice, the client declined to take part in this joint venture and avoid a potentially costly failure. The technology being advocated has not sufficiently matured in the year that has elapsed since the time of the proposed partnership and no significant market for its use has developed.
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