Business acquisitions in the sustainability sector
In both the public and private sectors, there is a growing interest in environmental, social and governance (ESG). A robust and clear ESG strategy has become a necessity that may hold the key to attracting external investment.
The sustainability sector itself is comparatively young, but the topic is high on the agenda of most entrepreneurs for reputational and financial reasons.
A take-over in the sustainability sector is a useful mechanism for meeting ESG strategic goals, expanding a skillset or service offering, and future-proofing revenues.
High growth ESG sub-sectors, and those with potential growth, are highly attractive to private equity players and demand can outweigh supply. These areas include sustainable food, waste recycling, renewable energy, and electric vehicle infrastructure.
The dynamic in this diverse sector supports an active mergers and acquisitions market.
Trends and developments in the sustainability sector
Public attitudes towards sustainability are changing. Consumers are flocking to companies that promote themselves as cutting emissions, reducing plastic, or using recycled materials. They increasingly choose electric cars, solar panels, locally produced food, and other products that contribute to a better world.
Companies must also comply with sustainability goals imposed by governments. This can create momentum for take-overs in the sustainability sector, even against a background of rising raw materials prices and shortages of materials and staff.
A better ESG position can create additional value: conversely, a company without a robust ESG strategy may miss out on revenue opportunities and be less attractive to buyers and investors. Ratings providers have developed methodologies to evaluate ESG performance, and it may not be long before ESG due diligence determines whether a deal goes ahead, and both sides have to consider governance and risk management around climate, social and labour issues, product design, and sourcing materials.
Supply chain management and buy-and-build
The sustainability market has reached maturity in the past couple of years, with demand sometimes outstripping supply and leading to supply chain collaborations and companies joining forces through business acquisitions. This is underlined by investors who seek a take-over in the sustainability sector in order to execute their buy-and-build strategy.
Buying or selling a company in the sustainability sector
There are plenty of good reasons to consider a take-over in the sustainability sector, or to pursue a buy-and-build policy. The growing importance of sustainability to consumer and businesses should ensure your company is well-positioned in the market.
Our professional assistance can help you in the search for a potential purchaser, as you prepare an exit strategy or to generate retirement income.
Marktlink: your specialist in acquisitions in the sustainability sector
Each year, more than a thousand entrepreneurs in this sector use the Marktlink Multiple to calculate their business value. We regularly guide the transaction process for sustainable businesses and have unrivalled market knowledge and a substantial portfolio of potential buyers and sellers.
Are you considering a take-over in the sustainability sector?
Marktlink can help you realise your ambitions. Always committed, independent and professional, we have a large national and international network, and detailed knowledge of local and global markets. Our specialists will use their knowledge and experience proactively to help you find the right successor or implement your growth strategy.