Financial feasibility study public acquisition shares Attero
How do you accomplish that city councils make a well-funded decision on buying shares in a waste management company? The challenge was to keep the company's financial sound and that the acquisition fits with the municipal ambitions in waste management. 130+ Dutch municipalities asked Rebel to support them with sound strategic and financial advice.
Municipalities are investigating the option to insource municipal waste at Attero
City councils in the provinces of Noord-Brabant, Limburg, Groningen and Drenthe are jointly looking into the option to process municipal waste at Attero. In order to do this without public tendering, they have to become shareholders in the company. The councils were interested but on two conditions: the acquisition had to be legally possible and the financial position of Attero could not be jeopardized. The municipalities asked Rebel to investigate the latter.
Condition: After the transaction Attero had to remain a financially robust company
Rebel executed a viability test where we determined the company’s financial situation at purchase date and the future value of Attero in relationship with the likely future of the waste sector. In order to do this, we analysed different scenario’s and characteristics of the waste market: in Europe and the Netherlands markets are focused on reducing the volume of residual waste. We also provided insight how Attero’s strategy fits with the councils’ sustainability ambitions.
Rebel’s study supported the decision making process
Our report and presentations for the municipalities helped a preliminary decision in buying shares in Attero. In the end the majority of the municipalities decided not to proceed with buying shares. The added value of Rebel in this process was to conduct a fact based study and boil the decision down to understandable and clear cut options. Municipalities complimented us on making difficult financial matter comprehensible.