Unlocking Hidden Value With ESG Synergies To Supercharge M&A Deals
ET Insights, Saturday, October 19th, 2024
Environmental, Social, and Governance (ESG) has been a key factor for mergers and acquisitions (M&A) in recent years.
It has driven firms toward sustainable integration, with the majority of M&A leaders expressing their willingness to pay a premium for a target company with a strong ESG profile or one that could enhance their company's ESG profile.
While large firms have increased emphasis on ESG reporting, several problems arise during acquisitions. Larger firms are enhancing their ESG reporting, but varying standards complicate assessment. Meanwhile, mid-sized companies often lack comprehensive ESG data, hindering the identification of valuable acquisition targets. To fully capitalise on ESG synergies, acquirers must integrate ESG factors at every stage of the M&A process - from due diligence to post-merger integration.