Capstone Headwaters released its Q1 Waste & Recycling Executive Summary, reporting that merger and acquisition activity in the Waste & Recycling industry increased 48% in Q1, with nearly 35% of deals in the Environmental Services (consulting, waste technologies, and equipment) segment. Private equity firms accounted for 46.5% of total Q1 announced or completed deal volume.
While many recycling programs are halted and commercial waste volumes have declined, operators that serve Residential and Medical Waste markets are poised to weather the storm without any significant disruptions to cash flows. The uncertainty in the global marketplace has prompted active buyers to increase deal selectiveness, while maintaining appetite for businesses that generate steady cash flows, display recessionary resilience, and sustain strong balance sheets.