Acquisitions and Mergers: Making for a Smooth Integration

Mergers and acquisitions are among the loftiest endeavors that waste companies ever take on. These ventures are not easy, and they are not without risk, but they are what drive this multibillion-dollar industry forward.

Pulling off a successful deal hinges on the integration process. When integration is done right, the people and companies that come together reap the anticipated value while maximizing synergies to go even further.

Read on to learn how some of the most known players in the world of waste approach integration to set up for success. And hear from a seasoned M&A and capital markets advisor well established in the industry.

For Meridian Waste, seamlessly integrating culture, operating systems, and accounting systems make for good outcomes. But how does leadership bring these and other critical components together?

“Any acquisition, no matter how large or small, requires forethought, planning, a systematic approach, implementation, and continuous management to ensure that the value of the acquisition is achieved and exceeded,” says Walter “Wally” Hall, Jr. Meridian CEO.

Getting the integration rolling starts with clear and consistent communication across every department. And some business tasks always come first.

“It’s important that we swiftly transition the accounts/contracts into our Soft-Pak operating system and Intact accounting software in order to properly manage daily operating stats and bill correctly from the start,” Hall says.

Streamlining collection routes is another immediate priority. To Meridian, prioritizing collections through the transition is a must for optimizing operational efficiencies, for better equipment utilization, and to direct volumes to the company’s disposal sites on ‘day one.’  

Re-thinking existing operations is part of the strategy. Hall offers up some of what he and his key decision makers may ask:

“Does a C&D transfer station need to remain just a C&D transfer station? Or can we re-permit the facility into a materials recovery transfer station? Can a landfill be reconfigured, expanded, or have the permit amended to enhance operations and longevity? Is there a means to provide new offerings while benefiting the community and industry?

“At Meridian, we say ‘yes’ more often than ‘no.’  The entrepreneurial spirit is alive and strong and is part of the integration aspects of our acquisitions.”

Waste Pro will have exceeded $150M in acquisitions in 2024 alone. For the Florida-based company operating in 10 states, deciding what to buy is about who the people and the company are.

Keith Banasiak, Waste Pro COO, exemplifies with the acquisition of J.D. Parker and Sons a few years ago –a small residential service provider deeply rooted in the Tampa area.

“That acquisition was successful because we were looking to not only acquire the company, but the people who made that company successful,” he says.

Instead of rebranding the 75-year-old family business as Waste Pro, leadership held onto the company name.

“We told them, your grandfather’s and father’s legacy will continue. And that really helped solidify the deal,” Banasiak says.

Still, there was catch up work to do.

“We brought them up to date on technology, trucks, processes, and safety. That was a game changer for J.D. Parker. But the day after the acquisition, it was business as usual, only with updated resources.”

The onboarded company has since multiplied in size many times and continues on a promising trajectory in Tampa.

As director of Brown Gibbons Lang & Company, an M&A and capital markets advisor, James Cocita helps waste companies and private equity firms buy businesses.

Cocita works on the front end of the deal, focusing on synergies to maximize operational benefits and ultimately save costs.

It could be eliminating duplicative infrastructure, trucks, or other assets. But where he’s especially seen impact is from adding service lines to offer more to existing customers and to grow that base.

Not long ago Cocita helped a Cleveland roll off container rental company buy its first landfill, cutting out a third-party hauler and pumping up profitability.

Though there was plenty to consider on the integration side.

“Now he has to reroute trucks to the new, centralized location. And planning all that out takes time,” Cocita says.

But when it comes to integration –routing or whatever it may be—success hinges on identifying synergies upfront. Recognizing those synergies early on as opportunities is key to seeing those opportunities materialize, he says.

Rumpke Waste and Recycling has a comprehensive playbook, with the first chapter focused on employees and customers, ensuring clear communication across business lines and that a plan is in place.

“We talk about how to make a good transition for the employees. And we talk about key community stakeholders and their customers and how to engage them,” says Ted Neura, senior vice president, business development, Rumpke Waste and Recycling.

Then comes the work to integrate operations, with the conversation turning to equipment and equipment maintenance, finance, service days and frequencies, among details.  

Rumpke’s role will largely remain similar to the new company’s role in front of the customer. 

“We are still picking up trash. We might adjust route designs over the coming months, but those routes get redesigned often anyway,” Neura says.

The merging companies’ cultures are usually very similar, so human dynamics is not a hurdle.

“In fact, our shared values is our opportunity [to bring everyone together]. A lot of our employees grew up in the business. They were all on the back of trucks and know how to relate and are relatable to others in our business,” Neura says.

The newly meshed team carries on for the most part as before. The idea is to provide resources and support to new family members while allowing their operations leadership flexibility to run their businesses. With that appreciation for nimbleness, sometimes Rumpke learns from onboarded companies and finds itself making changes for the better.

“We love bringing new businesses into the fold and taking their feedback on the market and their approach. We have adapted based on their input,” Neura says.

Clean Harbors has completed more than 70 acquisitions through its history, so M&A has been a key driver of its growth strategy. 

The result of decades of acquisitions and strong organic growth is that Clean Harbors has taken a strong hold in the Environmental and Industrial services market throughout North America. 

One strategy that’s a bit different from some companies is that leadership looks to fully integrate targets into its IT systems and platforms on day 1. 

“Change management is difficult, so this requires significant diligence and planning ahead. But we have found this practice to be extremely beneficial to the combined operations post close. And it accelerates the entire integration and synergy process,” says Eric Dugas, Clean Harbors CFO.

“It also disables that sense of a separate entity immediately and unifies both organizations right off the bat, which helps culturally as well,” he says.

Executing integrations that deliver on the deal’s promise commands a multifaceted strategy. The basics? Plan early. Deploy teams across business lines and departments to ensure alignment and clear communication. And remember it’s about fostering a unified culture and supporting the people who will propel the combined company forward.