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The Metacatalyst: The Right Role for Private Equity in the Water Industry
Author(s) -
Lueneburger Christoph
Publication year - 2006
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.2006.tb07677.x
Subject(s) - consolidation (business) , business , private equity , witness , equity (law) , industrial organization , business opportunity , commerce , finance , market economy , marketing , economics , computer science , political science , law , programming language
This article discusses how the water market will witness substantial consolidation over the coming years and that much of the opportunity to create value in the process resides in today's small and mid‐sized companies. Many of these businesses, lacking the scale to attract industrial investors or traditional private equity firms, recognize the opportunity inherent in new business models, bundling their offers with other components of the value chain. The right partner for them will be one who understands this opportunity and brings not only the capital but also the strategic resolve and operational skills to help assemble integrated solutions. The article discusses key characteristics common to both the early days of the oil industry and today's water market.