Chicago mergers-and-acquisitions advisor Matthew Brunstrum has spent more than a decade guiding deals from every side of the negotiating table, first as director of mergers and acquisitions for a multi-billion-dollar publicly traded waste management company, then as a senior advisor at a boutique M&A firm representing both buyers and sellers. In 2023, he founded Lakeside Acquisitions, where as CEO he now focuses almost exclusively on the waste and recycling industry, closing more than 100 transactions and personally managing client relationships throughout the process, including one of the largest waste acquisitions completed by a publicly traded industry major in 2024. He holds a business degree from Indiana University Bloomington and, outside of deal work, follows Chicago sports and enjoys fishing and boating. His firsthand experience on both sides of waste-industry transactions gives him a practical vantage point on how mergers and acquisitions continue to reshape the sector.
Mergers and acquisitions (M&A) have become an increasingly important driver of growth and development in the waste and recycling industry.
These strategic terms are often used interchangeably, though they differ slightly in their operations. In mergers, a company combines its efforts and resources with a similar-sized entity to achieve greater synergy and command a larger market share. Acquisitions, on the other hand, involve one company, known as the acquirer, buying a smaller organization, known as the target.
The waste and recycling sector’s unique characteristics make M&A appealing to buyers and investors. Waste collection and related services are essential, meaning demand is not entirely dependent on discretionary consumer or business spending. The industry also benefits from contracted and recurring revenue, which can provide greater predictability for operators and potential acquirers.
M&A offers several benefits to buyers and investors.
The waste industry has barriers to entry. Waste companies operate within markets shaped by existing routes, facilities, equipment, customer relationships, and regulatory requirements. These characteristics can make it challenging for new competitors to establish their business and generate returns.
As such, acquiring an existing operator can give a buyer immediate access to an established business and its infrastructure rather than requiring the buyer to build those capacities from scratch.
This strategy helps companies expand their geographic reach. An acquisition can strengthen an existing market presence or provide entry into a new service territory.
M&A helps in diversification. Buyers can use acquisitions to add complementary capabilities, allowing them to offer a wide range of services to customers. This approach helps minimize the risk of total losses in case one service underperforms or faces industry-related hurdles.
Besides, M&A supports economies of scale, which can help buying companies reduce costs as their operations expand. After combining operations, acquirers can leverage their increased size to negotiate more favorable terms with suppliers and take advantage of bulk-purchasing discounts. This lowers the cost of purchasing goods, benefiting the business’s financials.
M&A further cuts costs by allowing companies to consolidate facilities and distribution networks. When two businesses combine, they can eliminate overlapping operations and organize resources more efficiently. This reduces unnecessary expenses associated with maintaining separate operations.
To attract buyers and successfully transact with them, sellers should understand what these investors look for in such deals.
Financial clarity is important during the M&A process. Buyers need to understand the target company’s underlying performance and have confidence in the information presented to them. Financial records that clearly explain revenue, expenses, and operating performance simplify the evaluation process.
Having recurring contracts strengthens a target company’s position and attractiveness. Predictable revenue provides buyers with valuable insight into future operations and makes a business more attractive than those that depend heavily on transactional work.
Additionally, operational and regulatory discipline matter to investors. Waste businesses operate in an environment where compliance is an important consideration.
Buyers conducting due diligence will examine potential environmental, regulatory, safety, and operational issues. Identifying and addressing problems before entering a transaction can help reduce uncertainty during the process.
Sustainability is another factor influencing the waste and recycling M&A transactions. There is growing concern about environmental preservation, and modern clients wish to be associated with waste and recycling companies that recognize and address this issue. Sellers who have invested in trends such as green technologies and the circular economy are, therefore, attractive to buyers.
Importantly, sellers should understand their business’s strategic value to determine appropriate valuations before closing M&A deals. Some entities, for instance, may be struggling, yet they are located in favorable geographic locations and have the potential to complement an existing operation.
M&A experts, such as Matthew Brunstrum, Founder and CEO of Lakeside Acquisitions, highlight these considerations during negotiations to maximize value for clients.
About Matthew Brunstrum
Matthew Brunstrum is the founder and CEO of Lakeside Acquisitions, a Chicago-based mergers and acquisitions advisory firm he established in 2023 to serve owners of privately held waste and recycling companies. His background includes service as director of mergers and acquisitions for a multi-billion-dollar publicly traded waste management company and as a senior advisor at a boutique M&A firm. A business graduate of Indiana University Bloomington, he has closed more than 100 deals and is active in Chicago’s sports and outdoor communities.
