Commercial due diligence for an investment in a waste management SaaS company
Summary
ST strategy carried out the commercial due diligence for an investor assessing participation in the company’s Series A round.
New waste regulation requires companies and builders to trace and certify how their waste is managed. This has given rise to digital solutions that combine software, data and environmental advice.
WasteTrack* offers an AI-based SaaS platform to trace waste flows, issue treatment certificates, report environmental impact and select waste managers, with a client base concentrated in construction.
ST strategy carried out the commercial due diligence for an investor evaluating a minority stake.
Climate tech
Commercial due diligence
Series A investment
The full story
Opportunity
The investor needed an independent view on revenue quality, the client value proposition, competitive positioning and the reasonableness of the proposed valuation before making its investment decision.
Recommendations
ST strategy structured the due diligence in three phases: The conclusions allowed the investor to test the proposed valuation and identify the model’s differentiating factors and key risks.
- SaaS metrics: Rebuild of billing history by revenue line and analysis of ticket size, recurrence, retention, churn and pricing.
- Client validation: Interviews with active clients, converted and non-converted pilots and lost opportunities to understand return, willingness to pay, adoption barriers and churn risk.
- Competition, risks and valuation: Benchmark of Iberian competitors, substitutes, growth levers, regulatory drivers, exit scenarios and valuation model.
* The confidentiality of our clients is a priority of the company. Although we have changed their names, the information is real.