Companies specialising in waste management are very much in demand these days. Experts at AURIS Finance, specialists in merger and acquisition consulting, explain how you can speed up your company’s development with the right support.
Any entrepreneur who is in the process of selling their business knows that valuing an asset is a tricky task. To make this stage as smooth as possible, you can work to optimise your company’s growth. This initial thought process can have a significant impact on the level of valuation, particularly when it comes to resale. The fact remains, however, that company directors, who are often multi-tasking, have little time to devote to these issues. This is particularly true for SMEs and ETIs specialising in waste management.
A highly dynamic waste management sector
The sector is currently undergoing major changes. Alongside giants such as Derichebourg and Suez, which is about to be taken over by the giant Veolia, there are many smaller competitors. Some work as sub-contractors to the major groups, while others specialise in niche markets such as the collection of medical and industrial waste or the treatment of electronic waste. With 343 million tonnes of waste produced each year, France is the second largest producer in Europe, just behind Germany. Demand for waste collection, sorting, and recycling services has risen sharply in France in recent years, with the turnover of waste management companies increasing by 21% between 2016 and 2018.
Highly coveted SMEs
Against this backdrop, SMEs are often the target of acquisitions by larger companies looking to increase their processing capacity or acquire a niche technology. In 27 years, for example, the Paprec group has made 60 acquisitions of companies specialising in waste collection and sorting. For company directors considering a sale, the stakes are high: they need to run the business, work on new innovations, and at the same time optimise the growth of the company with a view to a sale. If time constraints mean that directors need to focus on the day-to-day running of the company, there are specific programmes available to support them.
Putting things into perspective
Bpifrance offers companies in the waste sector the chance to join its Waste Transformation and Reuse Accelerator. The coaching programme runs for several months and offers advice, training and networking opportunities. To be eligible for the programme, companies must have been in business for at least three years and have a turnover of between €2 million and €10 million. “This support has taught us a lot about our business model and allowed us to take a step back from the daily grind and broaden our horizons by meeting other competitors in our industry: clients, suppliers, partners,” explained Simon Loisel, CEO of Les Champs Jouault, an SME specialising in waste collection, sorting, and treatment, at the Pollutec trade fair.
Seek expert advice
There are other forms of support. Company directors can turn to specialists in the mergers and acquisitions market. At AURIS Finance, our sector-specific experts have in-depth knowledge of the challenges facing the waste management market. They are therefore able to analyse your business and suggest ways to optimise it in order to accelerate your company’s growth.
