IMAP UK Circular Economy Sector Report Q4 2023
The circular economy is not just about better use of material and energy resources. It is being seen as a fundamental change in the way we find practical solutions to irreversible risks to our environment whilst spreading a decent standard of living as far and wide as possible.
Our research has shown that as more consumers and investors have become concerned with environmental issues, more companies are starting to be creative and embrace the circular economy in their core mission and strategy, especially if a competitor has moved.
Indeed, we believe this is an unstoppable and accelerating trend with legislative support coming recently passed bills such as the “Fair Repair Act” in New York and California.
This is reflected in nearly 100 M&A deals in the UK in the past 12 months (see table on page 12 in the report) in clean tech, environmental consulting, recycling and other areas that we believe form part of the Circular Economy.
M&A activity in UK listed companies suggests that EBITDA multiples for circular economy companies have jumped 27% in the past year.
Also included in this report:
- Defining and measuring a circular economy
- Greenwashing and challenges in quantifying a circular economy
- Circular economy for manufactured goods and consumables
- Circular economy-related M&A Deals
Access the full report below
Jurgis V. Oniunas
IMAP Chairman
At the start of the year, the outlook for Q1 was highly optimistic, with expectations of slowing inflation, lower interest rates, and improving growth projections. Unfortunately, we live in interesting times. Early in the year, speculation around the disruptive impact of AI on traditional SaaS business models triggered a significant revaluation in parts of the Software sector. More recently, escalation in the Middle East conflict has introduced fresh volatility – pushing oil prices higher, adding upward pressure on inflation, and creating supply-chain uncertainties. While it is too early to tell how these new shocks will eventually affect the global M&A market, we can be sure that our dealmakers around the world are on the ground every day – negotiating, re-evaluating, adjusting positions, and adapting to whatever the environment throws at them to deliver the best outcomes for their clients. They’ve done it for over 50 years, and that’s exactly what they’ll continue to do, no matter the conditions.
