Sustainable Waste Solutions Gain Momentum Within Waste Management Industry
M&A activity in the waste management sector is increasing with a focus on sustainable waste organizations. EQT Infrastructure recently announced an agreement to acquire Covanta Holdings for $5.3bn, the largest owner and operator of waste-to-energy facilities in North America. EQT expects to enhance sustainable solutions through digital technology initiatives, as well as organizational and operational investments. 1
Office Products Industry Makes Big Changes
The office product industry is undergoing a transformation to become primarily service providers instead of just product distributors. Business services and product retailer Office Depot has announced its intention to split its business into a retail and a B2B division. The separation of entities is expected to be completed by 2022. The Parent company, ODP, anticipates that the strategic split of business models will provide greater financial flexibility and focus so that each entity can enhance its go-to-market strategy and meet its customer demands. This move may allow Staples another opportunity to acquire the business.2 3
Private Equity Invests Deeper within the Professional Services Industry
Private equity groups remain interested in the professional services industry because of their increasing ability to scale more traditional professional service firms. The desire to invest in subsectors of the industry to bolster exit returns of platform investments drives enhanced activity within the space. For example, KPMG and Deloitte both recently sold their restructuring service divisions to private equity groups. This trend is expected to continue with the rising importance of professional services to an ever-increasing service-oriented economy.4 5
Hyper Automation Expected to Bolster HR Industry Demand
Human resources and benefits administration firms are expected to see continued business demand, driven by rising compliance costs, structural shifts in HR Management practices, and strengthening economic conditions. Companies are expected to continue outsourcing non-core operating tasks to save capital waste and better manage time. Companies seeking to improve workforce efficiency are expected to outsource automating functionality to HR companies. According to Gartner, the hyperautomation-enabling software market, which is focused on expansion of traditional automated capabilities, is expected to reach $596 billion by 2022.6 7
Management Consulting's Digital Transformation
Management consultants continue to fulfill key roles in multinational corporate strategies, including business advisory services. Consulting firms remain focused on digital growth opportunities driven by a need to satisfy urgent client demands for an ever-evolving digital landscape. Notably, Accenture remains active announcing 18 deals within the last three months. Over the last 12 months, Accenture has closed more than 30 deals. Most recently, Accenture announced the acquisition of Wabion, a solution provider. Asset management and private equity companies represent a key growth opportunity for management consultants.8 9
Largest Transactions Closed
- CoreLogic, Inc.
- Insight Venture Management, LLC; Stone Point Capital LLC
- Advanced Disposal Services, Inc.
- Waste Management, Inc.
- InnerWorkings, Inc.
- HH Global Limited
- Lionpoint Holdings, Inc.
- Alpha Financial Markets Consulting plc
- JSI Store Fixtures, Inc.
- LSI Industries Inc.
- Bolder BioPATH, Inc.
- Inotiv, Inc.
- Irving Burton Associates, Inc.
- DLH Holdings Corp.
This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.
EBIT - Earnings Before Interest and Taxes