Environmental Services M&A Update
- The NYSE Arca Environmental Services Index declined by 11.8% in Q3 and was outperformed by the S&P 500 which, only declined 3.8% over the same period.
- The median EV/EBITDA multiple in the Environmental Services industry for reported PE deals decreased to 12.5x in YTD 2023 from 44.5x in 2022 (based on limited data available). The median EV/EBITDA multiple for reported strategic deals increased to 15.1x from 15.0x over the same period.
- M&A deal volume decreased 12.3% in Q3 to 128 completed transactions from 146 in Q2 and decreased 28.1% from 178 deals in Q3 of the prior year.
- As a % of total capital invested in M&A transactions in YTD 2023, PE participation decreased significantly to 45.0%, down from 73.0% in 2022.
- Europe was the most active region in Q3 with 62 deals. Most notably in the European market was French-based Arverne Group’s $180.5 million acquisition of Transition in September 2023.