Circular Economy Series

In this publication, we look at M&A activity in the Waste Management and Recycling sector and consider how circular waste management is growing in the industry.

Recycling is a central component of the UK Government’s environmental strategy and good quality recycling assets have always attracted interest. It’s clear that trade buyers and investors continue to view recycling as a cornerstone of sustainability, accounting for 44% of UK Waste Management and Recycling sector deals in 2021. Businesses delivering recycling services are generating 8.0x EBITDA multiples on average, indicating that there is significant value on offer. With record levels of investor capital ready for deployment, and ESG considerations now critical, private equity investors are better placed than ever to compete with corporates for high quality sector assets.

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Find out:

• How sector acquisitions involving target businesses that reduce or eliminate waste through cyclical design have been growing
• Why recycling assets remain attractive acquisition opportunities
• What consistently high levels of M&A activity in the sector means for the growth of the circular economy in the UK

A circular economy business model moves away from traditional linear business models, where raw materials are used to produce products that have a finite lifetime, before being disposed of without consideration for environmental impacts. In a circular economy, materials, products and energy are reused, repaired, recycled, shared and composted to return natural resources to the earth, and prolong the lifetimes of technological resources.

‘A circular economy decouples economic activity from the consumption of finite resources. It is a resilient system that is good for business, people and the environment. The circular economy is a systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution.’ – Ellen MacArthur Foundation

A move to a circular economy would hold many benefits for the environment, and the climate crisis. It aims to eliminate waste, with biological materials being reused until they can be composted or used as fuel, and prolonging the lifecycle of finite materials like metals by focusing on reusing, refurbishing and replacing parts. In turn, by aiming to return natural resources to the earth, it aims to regenerate nature, with the economy operating on a principle of reusing resources many times over. This reduces the reliance on finite resources and allows the economy to actively regenerate the natural environment.