Capstone Partners’ Recent Acquisition Deepens Private Equity Capabilities and Solidifies Position as Top 10 U.S. Middle Market Investment Bank. Read More >
Capstone’s latest Waste & Recycling Market Update reports that the continued adoption, utilization, and development of innovative technology solutions aimed at improving overall efficiency and margins for companies in the Waste & Recycling market is expected to persist as tuck-ins that build out new service capabilities were actively targeted. Emerging technologies initiated a shift in waste and recycling operations, exposing the sector to renewed investment opportunities. Solutions including global positioning system (GPS) tracking systems, automated side-loading, and artificial intelligence (AI) sorting supported the shift towards technology heavy processes. This sector-wide focus became apparent as businesses continue to make technology integration a key aspect of growth initiatives in pursuit of operational efficiencies and cost savings.
The Waste & Recycling market moved towards the levels of modernization and technology adoption seen elsewhere in the Industrials space. Operators embraced developments that streamline waste collection and processing, drive cost-savings, and benefit from sustainable operations as global waste generation is expected to continue to worsen in the near future. Merger and acquisition (M&A) activity in the Waste & Recycling market experienced a slight uptick in 2025, reaching 178 transactions. While marginal in count, this upward movement follows two consecutive years of declining deal volume. Furthermore, the sector displayed resilience amid a decline in deal count within the broader Industrials industry. Private strategics slowed dealmaking in 2025, while public strategics increased acquisition activity. Technology integration and route expansion sustained buyer interest as strategics targeted inorganic growth to expand clientele while pursuing innovative, easily deployable technology solutions. Moreover, a less scrupulous regulatory environment allowed for Waste & Recycling sector buyers to gain access to high value assets and deploy aggressive consolidation strategies in the space, positioning the sector to continue to experience positive momentum heading into the new year. Financial buyers gained M&A market share in 2025, comprising the majority (52.8%) of sector deals. Private equity add-ons accounted for the lion’s share of total deal volume, as sponsor-backed companies looked to build robust footprints. Platform formations recorded a considerable jump in deal count in 2025 compared to prior year, indicating substantial renewed investment interest in the Waste & Recycling market in 2026. M&A valuations in the Waste & Recycling sector remained healthy despite a regression. The average sector EV/EBITDA multiple in the 2022-2025 period fell more than two turns compared to 2018-2021. Meanwhile, the average EV/Revenue multiple expanded slightly when compared to 2018-2021.
Also included in this report:
A breakdown of public company M&A activity and spending in 2025.
Insights on emerging technologies for operators in the Waste & Recycling market.
A breakdown of public company data and how those companies have compared to select benchmarks.
The experienced investment banking professionals on Capstone Partners’ Waste & Recycling Team work with leading middle market companies operating in the Waste & Recycling market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about the contents of this report, or about the benefits of starting a relationship with our Waste & Recycling Investment Banking Team, contact us.
