Providing Expert Commercial Due Diligence Advice

6th August 2020

As the waste sector grows in response to both local and global environmental challenges, we are seeing an increasing number of new project and business opportunities. In this commercial climate, waste management companies and developers are looking at their assets and considering their options regarding sale and acquisition.

Whenever an asset comes to market, sellers must demonstrate its value, and buyers must examine the business’s intrinsic value, supply and demand dynamics, and earnings potential. As industry experts with a uniquely holistic view of the sector that encompasses both operational and policy aspects, we are able to provide our clients with commercial due diligence advice in these matters, enabling them to judge the market values of assets and identify business opportunities and risks.

Furthermore, because we understand the sector in all its myriad operations, we can advise on commercial undertakings related to the full range of waste infrastructure, including for residual waste (landfill and energy from waste), organics (anaerobic digestion and in-vessel composting), plastics, waste electronics and electrical material and dry material recycling (collection, sorting and reprocessing infrastructure).

The services we can provide our clients, on both the vendor and purchaser side, include:

Sector and policy insights

Our broader work includes informing government agendas on matters of environmental stewardship, through to design of environmental policy itself. This gives us powerful insight into risks and impacts of forthcoming policy and regulatory change within the waste sector, which is of great value when advising businesses on commercial matters. Notably, our work for government clients such as Defra, the Department for Business, Energy and Industrial Strategy and the European Commission means that we can anticipate the policy pipeline, as and how this will affect the sector, ahead of our competitors. We can provide expert tailored commentary on all aspects of the waste sector, from policy forecasting, to product and material market circular economy transitions, to treatment markets and beyond.

Commercial reviews

By using our own market knowledge, our-red-flag reviews of businesses see through the investment memorandum, financial model data and promotional information to identify true business risks and benefits.

Feedstock and gate fee assessments

Drawing upon our database of waste flow and compositional data, modelled for bespoke geographies, we are able to identify available feedstocks for existing or prospective waste facilities. By applying economic assessment techniques to feedstock and gate fee data, combined with our market insight, we are able to offer informed advice on the technical and economic merits of waste business operations.

Contractual advice

Our expert review of existing contracts quickly identifies contractual features that may affect commercial outcomes. Identifying upside and downside risks gives investor surety and enables the right price-points to be identified. Our insight into industry typical contracting approaches and best practices provides added value.

Advice across multi-phase sales/acquisitions

Our market knowledge and experience enable us to provide commercial advice and deliver a range of different due diligence assessment types, at a range of operational scales and based on varying resolutions of financial and environmental data. This means that we can advise our clients at whatever transactional stage of the sale/acquisition process they are working at. This includes preliminary commercial evaluation to enable pre-emptive bidding prior to formal transaction processes, right through to detailed vendor information review and validation. Our expertise lies in reading between the lines to identify the true current value and long term potential of businesses in the sector.

Senior Consultant Harriet Parke said:

“Our waste market knowledge, technical specialisms and work to advance the environmental policy agenda mean that when clients engage Eunomia for their commercial due diligence, they know they are getting the most informed advice. With one of the largest and most dynamic teams dedicated to waste management in Europe, working across all areas of the sector, we offer our commercial clients the most respected and comprehensive service available.”

Image courtesy of Mike Tunney via flikr CC BY 2.0