logo footer February 26, 2020

Creating true value from mergers & acquisitions in the water industry

The world’s leading advisory firm focused on the water industry, Amane Advisors knows what it takes to help companies navigate the water business and accelerate their growth. A global company with offices in the UK, France, the United States, Bahrain, China and Singapore, Amane Advisors provides an array of services including Strategy, Market Intelligence, Mergers & Acquisitions, Commercialization, PPP Advisory and Digital Transformation.

Amane Advisors combines the advantages of an international consultancy with the expertise and agility of a boutique firm immersed in all water markets. Led by an industry-leading team of senior partners, we offer clients unparalleled insights into the water business and connections within the industry, as well as a committed, customer-centric approach. In addition to in-house resources that encompass a dedicated research group, we have built an unsurpassed network of more than 350 independent industry experts, covering all geographic regions, who can add further specialized knowledge and experience to specific engagements as needed.

 

Specialized M&A Advisory Services

From our origins as a market intelligence and strategic consulting firm, Amane Advisors has developed a robust practice and strong reputation in specialized M&A advisory services for the global water sector on either the buy side or sell side. In 2019 alone, we advised clients on six successful water-related M&A transactions, in addition to conducting a range of due diligence analyses for financial and strategic investors. We leverage our vast knowledge of the water sector and specific transaction expertise to help clients realize their external growth plans, providing advice and support throughout the entire M&A cycle, from an initial acquisition roadmap through to post-merger integration and business turnaround.

Our disciplined approach to M&A advisory services encompasses several distinct steps:

  • Strategy development. Developing a strategic M&A roadmap, aligned with the client’s goals and corporate strategy, grounds the engagement by identifying which sub-segments to invest in – and when. Access to the latest and most accurate market data keeps Amane’s M&A specialists informed about current trends and enables them to position each transaction in the market.
  • Identification of acquisition targets or buyers. Market scans using Amane Advisors’ proprietary and qualified databases pinpoint target candidates that offer an excellent strategic fit and the potential to create real value. Amane’s exclusive database of over 3,500 profiled water and related companies enables comprehensive screening of targets faster than generalist M&A firms, and our resources also include a proprietary database of over 1,000 investors with interest in water.
  • Due diligence support and transaction closing. This includes commercial, operational and technical due diligence by Amane’s experts to provide an independent perspective on the target, its value, risks and the value creation potential.
  • Post-merger integration planning and management to realize the maximum value of an acquisition.

We are proud of our successful track record in the M&A business. The following are just two examples of recent successes.

 

Facilitating Acquisition and Growth

Amane advised a global provider of water service management to municipal and industrial clients on its acquisition of a majority stake in a UK digital water company. The acquired company’s offering of innovative sensors and algorithms for accurately diagnosing pump performance in real time aligned perfectly with our client’s strategy of using smart water technology to meet the challenges of water sector management. The acquisition also enhanced our client’s competitive edge, enabling them to differentiate themselves through technology.

The challenge was to structure a transaction that ensured keeping the entrepreneurial spirit of a start-up, and the commitment and long-term motivation of its founders who would remain in the business, while incentivizing our client to leverage its global network and operations to accelerate the acquired company’s growth. Amane’s unique expertise in the water industry, knowledge of digital services, and understanding of the cultures of both technology start-ups and larger corporations were key assets in the success of this transaction.

 

Guiding Investment

In another case, Amane advised a Latin American supplier of water and wastewater treatment solutions and Engineering, Procurement and Construction (EPC) capabilities in its search for a strategic buyer interested in developing business in Latin America and capable of driving value creation and growth for the company. Through our in depth understanding of the Latin American water market, transactional expertise and strong networks with strategic investors, we supported the selling shareholders through a global sale process. We were involved in developing the investment thesis, conducting initial screening and approach of investors, due diligence, negotiation and closing of the deal.

The eventual buyer was a European family office with existing holdings in the water space. Through this acquisition, they were able to establish a growth platform in Latin America with a strong market presence, as well as the potential for capturing synergies with its other water portfolio companies.

 

The Amane Advisors Difference

What makes Amane Advisors the leading global water consultancy? A combination of factors set us apart:

  • Deep industry knowledge. Our partners have all spent decades in the water industry, and our team of consultants are specialists in water. This is a real advantage in helping a client tell its story to potential buyers – we know what makes an opportunity attractive, and what water sector buyers will be focusing on. In addition, our M&A specialists are highly experienced, having held executive positions in the water industry and leading both acquisitions and divestments.
  • A global network. Our network of senior level contacts among both strategic players and water-sector financial investors is a great asset. We can ensure that opportunities are being presented to the real decision-makers. Also, our presence with offices in the key markets (Europe, North America, Middle East and Asia) allows us access to the widest possible geographic range of potential deal partners.
  • Senior-level attention. Since we are a boutique firm, clients know that they can count on direct involvement of our partner team in their transactions. Our partners all have experience in M&A, whether in a corporate or advisory role (or both), and clients rightly place great value on this sort of first-hand experience.

We do not see ourselves as being in direct competition with the investment banks in the sector; in fact, we have great relationships with many of them. But we believe there will always be a subset of transactions (often smaller, very specialized deals) where the personal, specialist approach that Amane offers can be of great value to both sellers and buyers.

Perhaps one of our most important differences is the true sense of partnership with share with our clients.
We see ourselves as part of a team united by a shared commitment to each client’s success. To this end, our goal is to partner with clients to push the frontiers, inspire innovation and create the future, anticipating the waves of our industry.

 

About Amane Advisors

Amane Advisors is a global advisory firm dedicated to the water industry bringing services to its clients on all matters relating to their growth. Its clients range from multinationals, institutions and investors, to innovative start-ups and technology companies. Services include Strategy, Market Intelligence, Commercialization, M&A, PPP Advisory and Digital Transformation. To learn more, visit our website.