ESG & M&A
ESG can make or break a deal
ESG plays a key role in acquisitions. It provides insight into a company’s risks, value and long-term viability. You need to understand how ESG affects the transaction and how to manage it.
Valuation, risk and financing come together
During an acquisition, a company is assessed from all angles. ESG forms an integral part of that assessment. A strong ESG profile supports risk mitigation and value creation. Companies with a sustainable business model are often more attractive and achieve higher valuations.
At the same time, ESG can be a deal-breaker. ESG risks identified during due diligence can lead to price adjustments or termination of the transaction. Financiers also impose ESG requirements, which directly affect the availability and terms of financing.
From ESG insight to transaction structure
ESG requires a multidisciplinary approach. Our ESG team identifies relevant obligations and risks and translates these into the structure of the transaction.
We support both buyers and sellers in integrating ESG into the acquisition process, from due diligence through to contractual arrangements and financing.
Our expertise
- Identifying ESG obligations, tailored to the organisation and sector
- Advising on embedding ESG in the business model and its impact on value and risk profile
- Supporting ESG due diligence, on both the buy-side and sell-side
- Identifying and managing ESG risks in acquisitions, including through warranties and indemnities
- Preparing for new ESG regulation and supporting implementation
- Advising on ESG in acquisition financing and its impact on terms and availability