Buy-side commercial due diligence: EV charging

Zouk Capital, a leading investor in sustainable infrastructure, engaged LCP Delta to support its investment into EO Charging, a prominent EV chargepoint operator with a business model heavily underpinned by participation in flexibility markets. To inform their valuation and investment decision, Zouk required a deep understanding of the revenue potential across key flexibility markets in Europe.

Client needs and key question(s)

The client needed an independent, data-led assessment to validate the scale and credibility of flexibility revenues that EO Charging could access. Core questions included:

• What flexibility markets are accessible to EVs in the UK and across Europe?
• What is the potential revenue stack from participating in these markets?
• How does the target’s business model align with market accessibility and value potential?

What we did

LCP Delta structured its due diligence across three phases to build a comprehensive, regionally tailored view of market potential:

• Phase 1 – UK market access assessment: Identified all accessible UK flexibility markets for EVs, analysing entry conditions, participation models, and barriers.
• Phase 2 – Revenue stacking strategy: Modelled stackable value from different bidding and aggregation strategies in the UK, calculating net revenue potential under varying market conditions.
• Phase 3 – European market deep dive: Conducted a comparative analysis of five major flexibility markets in Europe, including market size, accessibility for EVs, regulatory environments, and projected revenue potential.

This phased approach allowed the client to benchmark the target’s claims and understand which markets were most aligned with their growth strategy.

The results

LCP Delta’s analysis enabled Zouk Capital to:

• Confidently assess the role of flexibility revenues in the business case.
• Benchmark the target’s pipeline against high-potential European markets.
• Understand the regulatory and technical enablers required to access value.

The work provided the foundation for a successful investment in EO Charging, with flexibility revenue forming a validated pillar of the company’s future growth strategy.