of the global IPO market and bottom up research and valuation analysis on every IPO. 2019 . The firm provides a range of environmental Seeking Alpha As to valuation, according to an NYU Stern School basket of publicly held Environmental & Waste firms, their average EV / Sales multiple in January 2020 was 3.08x. Montrose Environmental Group, Inc. (the Company, Montrose or MEG) (NYSE: MEG) today announced the acquisition of MSE Group (MSE), a leading provider of environmental … Information provided is for educational purposes only, may be in error, incomplete or out of date, and does not constitute financial, legal, or investment advice.). First Day Return: +46.7%. Montrose Environmental Group (MEG) intends to raise $160 million in an IPO of its common stock, according to an S-1/A registration statement. Management says its 'long-standing relationships with a number of Fortune 1000 companies and government entities, and many of its services were deemed 'essential' during the recent Covid19 shelter in place guidelines.Notably, the firm has acquired over 50 businesses in the last eight years, as management views the industry as still highly fragmented and it intends to continue 'selectively acquiring companies' in the industry. Montrose Environmental Group. MEG has a reasonable IPO valuation, potential for continued growth through acquisition and new organic opportunities as well as resilience to viral pandemic conditions. IPO Intelligence research provides institutional investors with top down tracking Don't risk buying another IPO without IPO Pro. 2019 . Expected IPO Pricing Date: To be announced. Montrose is seeking public market capital for its ongoing operations as well as to likely fund additional acquisitions, as the firm has been very acquisitive due to industry fragmentation. Montrose’s recent financial results can be summarized as follows: Below are relevant financial results derived from the firm’s registration statement: As of March 30, 2020, Montrose had $1.5 million in cash and $257.5 million in total liabilities. Renaissance Capital Investments, Inc. is a FINRA-registered broker-dealer, and member of SIPC. To listen to an audio version of this report, click the Play button on the graphic below: Irvine, California-based Montrose was founded to provide environmental services through three business segments: Management is headed by president and Chief Executive Officer Mr. Vijay Manthripragada, who has been with the firm since September 2015 and was previously CEO of PetCareRx and prior to that was a Senior Vice President at Goldman Sachs. Renaissance Capital is the global leader in providing pre-IPO institutional You’ll eliminate logistical headaches and gain access to the best technology for each project. We provide a diverse range of environmental services to our private and public sector clients across the life cycle of their needs —whether they are launching new projects, maintaining operations, decommissioning operations, rehabilitating assets, managing the impacts of climate change or responding to unexpected environmental disruption. While the ”core” businesses do not look very profitable, the company still shows resilient growth. Selling, G&A expenses as a percentage of total revenue have been rising as revenues have increased. Today, we have emerged as one of the fastest growing companies in a highly fragmented and growing $1.25 trillion global environmental industry. BofA Securities is the lead left underwriter and IPOs led by the firm over the last 12-month period have generated an average return of 46.0% since their IPO. Montrose Environmental Group Since our inception in 2012, our mission has been to help clients and communities meet their environmental goals and needs. Nine Months Ended . This is a top-tier performance for all major underwriters during the period. COMPREHENSIVE LOSS (In thousands, except per share data) Three Months Ended . This is Montrose Environmental Group, Inc.’s initial public offering. Today, we have emerged as one of the fastest growing companies in a highly fragmented and … From testing to remediation to proactive interventions, Montrose provides comprehensive, environmentally-focused solutions that combine the consistency of a national presence with deep, local expertise and regulatory insight. Market Watch - 5 months ago. 2020 . We expect the public offering price will be between $ and $ per share. Montrose Environmental Group, which provides environmental assessment, management, and remediation services, filed on Tuesday with the SEC to raise up to $160 million in an initial public offering. Montrose Environmental Group, Inc. Common Stock . Montrose Environmental bets on PFAS with NYSE IPO PFAS remediation features heavily in the prospectus filed this week by environmental services provider Montrose Environmental ahead of a $160 million IPO on the New York Stock Exchange. The firm's addressable market is believed to be approximately $395 billion and is expected to grow at a rate of 3.4% per year from 2018 to 2024. Management’s presentation of the company roadshow is available here. Latest Trade: The market opportunity for environmental services is large and expected to grow at a low-to-moderate rate of growth in the years ahead, although the aforementioned increasing focus on air quality as a result of the Covid19 pandemic may produce new market growth opportunities for nimble firms such as Montrose. I have been working at Montrose Environmental Group full-time for more than 3 years Pros Generous and competitive compensation and benefits package; 401K match; transparent, honest and genuine executive team; diverse technical services/offerings; exceptionally talented and skilled employees; many growth opportunities internally. The initial public offering price is expected to be between $15 and $17 per share. Today's IPO for Montrose Environmental Group (NYSE: MEG) opened for trading at $16.50 after pricing 10,000,000 shares of its common stock at $15. Filed 2020-06-30 Terms Added 2020-07-14: For IPO Boutique's "scale of 1 to 5" BUY rating on Montrose Environmental Group, Inc., and our comprehensive analysis, click "Buy Market Research. Listed bookrunners of the IPO are BofA Securities, William Blair, BNP Paribas, Capital One Securities, Stifel, and Needham & Company. research and management of IPO-focused investment products. MEG’s proposed EV / Revenue multiple of 2.55x indicates to me that the IPO appears reasonably valued, especially given the firm’s likely higher revenue growth rate of nearly 20%. The Company expects to […] It was founded in 2012 and today it counts approximately 4,200 clients that are both private (~80% of revenue) and public organisations (~ 20% of revenue). However, Montrose says it is engaging with over 70 clients on their Covid19 response activities, so it appears the firm has the potential for resiliency through the pandemic and even the potential for new business opportunities as a result of the pandemic as customers increase their focus on air quality. Montrose Environmental Group, which provides a suite of environmental impact services, raised $150 million by offering 10 million shares at $15, the low end of … IRVINE, Calif.–(BUSINESS WIRE)–Montrose Environmental Group, Inc. (the “Company” or “Montrose”) announced today the pricing of its initial public offering of 10,000,000 shares of its common stock, all of which are being offered by the Company, at a price of $15 per share (before underwriting discounts and commissions). Increasing gross profit, but variable gross margin, Growing operating losses and negative margin, Uneven cash flow from or use in operations. Read More New California Industrial Stormwater Permit Requirements – Effective July 1, 2020 The company obtains customers through a direct sales force team and the firm has more than 4,500 clients producing revenue growth of an average of 17% per year since 2016, inclusive of its recent acquisition of consulting firm CTEH. Montrose Environmental Group Inc, an environmental services company, has priced its IPO of 10 million shares at a range between $15 and $17 per … MONTROSE ENVIRONMENTAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND. Provides a suite of environmental impact services. Important Disclosures We service complex, recurring and often non-discretionary environmental needs of our diverse clients across our three business segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. © 2021 Renaissance Capital LLC. Currently, no public market exists for the shares. Selling, G&A expenses have increased as a percentage of revenues; its Selling, G&A efficiency rate has dropped as revenues have increased. Montrose Environmental Group Inc. priced its initial public offering at $15 a share, the low end of its range, selling 10 million shares to raise $150 million. Return from IPO: +92.1%. 3,270,323 shares of common stock issuable as of September 30, 2020, upon the exercise of options outstanding under the Montrose Environmental Group, Inc. Today, we have emerged as one of the fastest growing companies in a highly fragmented and growing $1.25 trillion global environmental industry. Montrose Environmental Group Announces Pricing Of IPO At $15 Per Share. The initial public offering price is expected to be between $15 and $17 per share. ". Since our inception in 2012, our mission has been to help clients and communities meet their environmental goals and needs. By focusing on environmental solutions, we believe we are uniquely positioned to become a leading platform in the industry. Free cash flow during the twelve months ended March 30, 2020, was $2.0 million. Montrose Environmental Group Shares Open 10% Above Its IPO Price In NYSE Debut. when they were newly public. REVENUES $ 84,705 $ 57,623 $ 219,502 $ 165,978 Montrose Environmental Group is a product of environmental-related acquisitions. (I have no position in any stocks mentioned as of the article date, no plans to initiate any positions within the next 48 hours, and no business relationship with any company whose stock is mentioned in this article. 0.00 After IPO, the firm’s enterprise value will approximate $622.9 million and its share float will be around 49%. Our approach has allowed us to successfully scale our business, and we believe we are well positioned to continue our trajectory and market leadership as we address the growing environmental needs of our clients and communities. (RTTNews) - Montrose Environmental Group, Inc. (MEG) announced the acquisition of MSE Group, a provider of environmental assessment, compliance, engineering, and design services primarily to … Major competitive or other industry participants include: Management says its primary competitors are divisions of large companies and that few of its competitors provide the full range of solutions that it offers. According to a 2019 market research report by Environmental Business International, the global market for environmental services is estimated to have a value of $1.25 trillion. Montrose Environmental Group, Inc. (NYSE: MEG) announced today the pricing of its initial public offering of 10,000,000 shares of its common stock, all of which are being offered by the Company, at a price of $15 per share (before underwriting discounts and commissions).The Company has granted the underwriters an option to purchase up to an additional 1,500,000 shares of common stock. The firm’s financials indicate a slight softening in revenue growth and increasing operating losses. Oaktree sells Montrose stake at nearly 2x IPO price Shares in NYSE-listed environmental services provider Montrose Environmental Group closed up 6.3% at $29.58 yesterday after anchor shareholder Oaktree Capital sold down a further 15% stake via a secondary stock offering which priced at $27.25. September 30, September 30, 2020 . IRVINE, Calif.-(BUSINESS WIRE)-Montrose Environmental Group, Inc. (the "Company" or "Montrose") announced today that it has commenced an initial public offering of 10,000,000 shares of its common stock, all of which are being offered by the Company. Montrose Environmental Group: Interesting IPO. Renaissance Capital LLC is an SEC-registered investment adviser. Since our inception in 2012, our mission has been to help clients and communities meet their environmental goals and needs. Get your FREE TRIAL now. Below is a brief overview video of a Montrose PT Mobile Lab: The firm targets customers in the following markets: Montrose has received at least $168 million from investors including Oaktree Capital Management, CTEH Holdings, and Yukon Environmental. Management says it will use the net proceeds from the IPO as follows: We intend to use $139.3 million of the net proceeds from this offering in connection with the redemption of all outstanding shares of our Series A-1 preferred stock and the remainder for general corporate purposes, including future investments in innovation and acquisitions in our highly fragmented industry. All rights reserved. Montrose Environmental Group IPO Montrose Environmental Group (NYSE: MEG) is an environmental services company based in California. Montrose is a high-growth environmental … Thinking of investing in new companies before they become household names? Montrose Environmental Group has filed to raise $160 million in an IPO of its common stock, according to an S-1/A registration statement. Explore our IPO Center to track upcoming deals, analyze performance and read IPO news and expert commentary. Montrose Environmental Group, Inc. announced today that it has commenced an initial public offering of 10,000,000 shares of its common stock, all of which are being offered by the Company. The firm provides a range of environmental remediation and management services to industry. IPO stocks can be very volatile in the days immediately after an IPO. Montrose Environmental Group (MEG) intends to raise $160 million in an IPO of its common stock, according to an S-1/A registration statement. IRVINE, Calif.–(BUSINESS WIRE)–Montrose Environmental Group, Inc. (the “Company” or “Montrose”) announced today that it has commenced an initial public offering of 10,000,000 shares of its common stock, all of which are being offered by the Company. Google, UnderArmour and Facebook were holdings in our IPO investment strategies Company profile page for Montrose Environmental Group Inc including stock price, company news, press releases, executives, board members, and contact information $33.84 (0.0%). Amended and Restated 2013 Stock Option Plan as amended, or our 2013 Stock Plan, and the Montrose Environmental Group, Inc. Our integrated platform has been a catalyst for our organic growth and we have built on this platform through strategic acquisitions. A high growth rate is expected to occur in the Remediation and Industrial Services and Consulting & Engineering Services sub markets, and a lower growth rate in the Wastewater Treatment Services and Analytical Services markets, as shown in the chart below: Also, with the advent of the recent Covid19 pandemic, there will be an increased focus on air quality and management expects 'the WHO's guidelines coupled with increasing pollution to catalyze local air quality regulations and therefore, demand for environmental services, particularly air quality services.'. Montrose Environmental Group Environmental Services Irvine, CA 6,562 followers Environmental solutions provider blazing new trails with services ranging from routine compliance to complex projects. Given the reasonable IPO valuation, potential for continued growth through acquisition and new organic opportunities as well as resilience to viral pandemic conditions, my opinion on the IPO is a BUY at up to $16.00 per share. Montrose Environmental Group has gone public in an offering which went well with shares up 50% on their opening day despite a soft pricing process.The company is basically an acquisition play on the fragmented market for environmental services. Today, we have emerged as one of the fastest growing companies in a highly fragmented and growing $1.25 trillion global environmental industry. Montrose intends to raise $160 million in gross proceeds from an IPO of ten million shares of its common stock at a midpoint price of $16.00 per share. "We initiated a position in Montrose Environmental Group, Inc. during the quarter upon the company’s IPO. To receive automatic notification of new IPO activity, click the "+ Follow" link at the top right of the page. The Selling, G&A efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Selling, G&A spend, dropped to 0.5x in the most recent reporting period. Since our inception in 2012, our mission has been to help clients and communities meet their environmental goals and needs. We are selling shares of our common stock. About Montrose Environmental Group, Inc. (adapted from Montrose Environmental Group, Inc. prospectus): They service complex, recurring and often non-discretionary environmental needs of our diverse clients across our three business segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. Our industry is highly fragmented with no single market leader. 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