Environmental Services M&A in 2024 Update: How M&A is Playing a Heightened Role in the Pursuit of Sustainability Strategies

The environmental sector has continued at a strong pace as the emphasis on sustainability continues to grow, according to a new industry report coauthored by the BGL Environmental investment banking team and L.E.K. Consulting.

This article covers notable M&A transactions and the driving forces behind a shift in environmental services investing to sustainable yet pragmatic solutions. The full 26-page Environmental Insider report is available for download, and along with a more in-depth breakdown of the environmental M&A market, includes a more thorough discussion on the following topics:

• Why companies view sustainability practices as a value-creation opportunity and key growth lever
• How technology is revolutionizing the waste and environmental sector’s adoption of sustainability-based practices
• The factors behind waste-to-value becoming an emerging area of opportunity

May 2024 Environmental Services M&A Market Update

The Environmental Services M&A market is seeing strong activity as emphasis on sustainability continues to grow. Customers are increasingly pursuing sustainability focused solutions from their service providers, leading companies to seek acquisitions that can more rapidly build scale and expand service capabilities into adjacent technologies and waste treatment categories and end markets.

Our full Environmental Services Insider offers a more in-depth analysis of the current M&A environmental with Mark Wayne at Amlon, Brian Brantley at VLS and more industry leaders. 

Global Dry Powder in Private Equity and Infrastructure Funds Available for Environmental Services Investment

Significant dry powder is available and in the market pursuing deals, particularly those that have a strong sustainability aspect to them. According to PitchBook, private equity funds with an environmental services preference have amassed more than $1.3 trillion in capital globally, while infrastructure funds have accumulated more than $500 billion. Best-in-class assets will continue to attract compelling valuations as both the investor community as well as strategics continue to seek ways to deliver strong year-over-year growth while diversifying their mix of sustainability driven solutions.

Notable Environmental Services Deal Roundup

Significant capital inflows are coming into the environmental services sector, resulting in a high level of platform formation and add-on acquisition activity. Investors are attracted to the market’s stable demand, viewing waste as an essential service and,  therefore more recession-resilient and a safe haven for long-term growth. The favorable regulatory climate, governmental funding tailwinds, and sustainability imperative provide a foundation for defensible growth.

Contact our Environmental Services Team

Led by Effram E. Kaplan and James M. Cocita, BGL’s Environmental Services investment banking team maintains strong relationships with strategic and financial buyers around the globe. Reach out via our contact form to learn how our industry-leading team can best position you to achieve your strategic objectives.