KBS - Environmental Services - Market Insight

6. MARKET POSITION & CUSTOMER DIVERSIFICATION

• Broad client bases across industrial, public sector and commercial markets reduce risk.

• Regional or national coverage with scalable capacity drives consolidation appeal.

• M&A activity is strong in waste management, recycling and ESG consultancy as investors consolidate fragmented markets and seek sustainable infrastructure platforms. 7. PRIVATE EQUITY & STRATEGIC CONSOLIDATION ACTIVITY • Businesses focused on resource recovery, waste-to-value and low-carbon operations attract higher valuations due to policy alignment and long-term demand growth. 8. INNOVATION & CIRCULAR ECONOMY FOCUS • Acquiring companies is a key strategy to quickly build capacity, obtain specific skillsets (e.g. in climate resilience, biodiversity or digital services) and address the ‘war for talent’. 9. ACCESS TO TALENT AND EXPERTISE STRATEGIC VALUE Acquisitions are not just for operational improvements but for generating real value through strategic investment in areas such as digital transformation and the energy transition. ESG PREMIUM Companies with strong ESG credentials and verified environmental practices command a premium in sales price due to being perceived as lower-risk and better aligned with future sustainability trends. SECTOR FUNDAMENTALS Long-term regulatory drivers, non-discretionary demand for environmental services, and recurring revenue streams provide stability and profitability, making targets highly attractive. Deal values in the UK environmental services sector are strong for several reasons:

The competitive market amongst buyers supports our confidence that deal values are expected to continue on an upward trend.