Brown Gibbons Lang & Company’s Cocita Sees Sustainability as a Smart Investment

As director at Brown Gibbons Lang & Company (BGL), a M&A and capital markets advisor, James Cocita helps public companies, private equity, and founder-owned firms through one of the most transformative business milestones they will ever encounter.

In this Q&A, the 40 Under 40 Award recipient discusses navigating the ins and outs of selling or acquiring a business. And he expounds on investors’  increased  interest in the transition to a circular economy and, with that interest, their growing attraction to the waste management sector.

Waste360: What is investment banking and how did you get into the work you do?

Cocita: At BGL, we advise private and public corporations and private equity firms on M&A, capital markets, and other strategic matters. As sector-focused bankers, we leverage our industry expertise to provide tailored, bespoke solutions in support of our clients’ strategic goals.

Prior to joining BGL in 2015, I worked at Candlewood Partners, a lower middle-market boutique investment bank primarily focused on special situation advisory services. During my time at Candlewood, I was lucky to have an opportunity to work on a couple of environmental-sector M&A transactions, and I knew this was the aspect of investment banking that I wanted to focus on. When an opportunity to join BGL’s environmental team became available, I jumped at it. Fast forward almost 10 years to where I’ve been working in this sector and have loved every minute of it.

Waste360: What’s most exciting about your work supporting waste management companies?

Cocita: It comes down to working with passionate people. I can genuinely say that I enjoy partnering with our clients and helping them navigate the ins and outs of selling or acquiring a business. Whether it is working with public companies, private equity, or founder-owned businesses, I find it meaningful to advise them during one of their most transformative business milestones. Some of our clients have built their business from the ground up – the trust they place in us to help navigate the transaction process is something I don’t take lightly.

Waste360: What’s the most challenging part of your work?

Cocita: There isn’t one singular aspect that necessarily stands out as being notably most challenging. Every engagement is unique in its own right. Learning to navigate this dynamic so as to provide thoughtful solutions that achieve the desired outcomes for our clients and really all stakeholders is a skill developed over time.

But if I were to point out one of many skills I find particularly valuable to be able to stand up to the tasks of the job, is to consider all of the needs and views of the relevant stakeholders of a transaction and understand how to effectively communicate and manage each throughout a transaction lifecycle.

Waste360: Are there evolving developments in the waste sector that impact your work?

Cocita: M&A activity and investor interest in the environmental sector has been more in the spotlight for a few years now. In the past, the sector has been viewed as a capital-intensive industry with inherent safety and health risk of liabilities that led to a natural trepidation from prospective investors. More recently, the tremendous growth and strong fundamentals of the environmental sector, even in periods of economic uncertainty, has spurred a significant increase in interest and has attracted sophisticated investors across money managers, private equity, and infrastructure funds.

A key driver of the increasing interest and capital investment in the sector is the growing adoption of sustainability and the transition toward a circular economy. The changing regulatory landscape and inflow of capital targeting sustainability-focused solutions has spurred accelerated growth for operators who have proven an ability to monetize innovative solutions for waste. The volumes are not going to go away, and those that are able to adapt and innovate sustainable solutions will continue to be some of the more interesting and financeable assets in the market.

Waste360: How has the role of sustainability changed the M&A environment?

Cocita: The emphasis on sustainability continues to grow and play a bigger role. Corporations and consumers alike are elevating sustainability concerns into strategies and decision-making. Regulation continues to increase in various geographies, spurring corporate action and demand for sustainability reporting. Investors are also including sustainability factors in their investment approach. For many, sustainability has become as much about opportunity as it has about risk.

Waste360: Can you expound on the importance of relationships and your philosophy for building trusting relationships?

Cocita: As advisors, relationships are absolutely critical. I’ve been lucky to witness the result of building relationships from the ground up during my time at BGL. We’ve always viewed a transaction as two-sided, and we’re mindful of the fact that a transaction requires both sides to come together. There’s a buyer and seller, and our client might be the seller, but the relationship we have with the buyer is important because you want them to trust you, and the only way to do that is to be authentic and transparent. We are with our clients through every step of the transaction process, and when viewed through that lens, I think it puts a different level of importance on the work you’re doing. When there is meaning in your work, I believe you are going to work harder.

Waste360: Beyond prioritizing relationship building, what does it take to be successful in your line of work?

Cocita: Beyond the technical capabilities needed for this job, having a creative mindset when it comes to finding the right buyer or capital source is critical. But also seeing transaction structures and the sequencing of everything from different perspectives is critical. Being able to creatively craft this strategy is a practiced skill that is developed through experience. Another quality that sounds simple and obvious is just being available and reliable.

Waste360: What do you like doing off the clock?

Cocita: My wife and I have three kids under the age of six – most of my non-working hours are spent trying to catch my breath while keeping pace with the three of them and all of their activities. I try to stay active as well, so when I need to move I enjoy getting outside for a run, a bike ride, or  going to the ice rink trying to relive my childhood dreams of winning a Stanley Cup.