A wide range of products and services are critical to the high-growth utility, renewable energy, data center, and commercial and industrial markets, driving steady demand and M&A through the electric infrastructure value chain. 

Below, senior professionals in our Energy, Power & Infrastructure (EP&I) Group and Industrials Group share the trends behind this momentum, as well as recent clients that exemplify the sector's expanding investment potential.

Stable Spending Powers Demand 

Across the aging and increasingly complex electrical grid, billions of dollars are being spent annually to upgrade, replace, and expand a swath of outdated assets. 

“Due to rapid growth in electrification, the transition to renewable energy, and a greater desire for connectivity, it’s become more critical to enhance grid resiliency, capacity, and durability,” explains Drew Spitzer, a managing director in our EP&I Group. “Essential grid improvements will drive sustained investment in electric infrastructure and a strong need for the companies that support the ecosystem.” 

This heightened demand has contributed to a lack of sufficient capacity to meet it. Customers of electric infrastructure solutions are often planning years in advance, which creates lengthy backlogs of contracted revenue for companies throughout the landscape. “The sector offers great long-term demand visibility—a trait that investors highly value in acquisition targets, especially during periods of macroeconomic uncertainty,” says Matt White, a managing director in our EP&I Group. 

Combined, these dynamics are increasing investor interest in a broad array of services, products, and technology within the electric infrastructure value chain. “Leading companies in this segment will continue to capitalize on unmet demand, take share, and drive outsized growth,” adds Florian Ripperger, a director in our Industrials Group.

Spotlighting Sought-After Companies

As shown by a variety of recent Harris Williams transactions, a diverse set of differentiated companies serving electric infrastructure have captured investor attention.

Meeting a Long-Term Need

The long-term need to maintain and upgrade existing electrical infrastructure is fueling a surge of investment in services, products, and technology businesses throughout the sector. 

“Capacity constraints across the market are likely to persist,” notes Neha Shah, a director in our EP&I Group. “There's substantial value-creation potential for platforms that can meet demand and build scale as electric infrastructure is revitalized, strengthened, and expanded in the decades to come.” 

To learn more about the sector's M&A opportunities, please contact our senior professionals.