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Green deals market showing resilience

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Notwithstanding the continuing difficult economic climate, certain sectors seem to be showing some encouraging signs of growth.

One area in particular where the UK mergers and acquisitions market seems to be booming is the renewables and recycling sectors, where recently released statistics have shown that deal volume for 2011 was up substantially from the previous year.

Accountants PwC reported a 40 per cent increase in M&A activity on renewables in 2011, while figures from Grant Thornton indicated that the recycling sector saw a 33 per cent increase in deal activity year on year, with similar levels forecasted for 2012.

The increasing onus on the population to seek out greener alternatives, including waste recycling and alternative energy sources seems to have stimulated this growth. Last year government figures showed that average rates of recycling were up to 40 per cent, with some areas showing even higher figures, leading to ever greater demand for waste solutions.

While incentives such as the solar feed-in-tariff may be coming under threat, the launch by the government of the Green Investment Bank, together with the announcement in April that it plans to make around £80m of loans available for small waste projects, means this pattern seems set to continue.

Harrison Drury’s own workflow has replicated the general market conditions, with the firm having acted for several clients in both the renewable energy and waste recycling sectors over the last 12 months.

As with all deals, it’s particularly important for companies in the renewables and recycling sectors to get expert legal advice when embarking upon the purchase or sale of a business.

The formative nature of many green businesses and the relative infancy of some of the technology they use, not to mention some of the regulation that is unique to these industries, make this even more important.

For more information on buying or selling a business, contact David Filmer on 01772 258321.


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