How ESG can add value to M&A
Shareholders. Employees. Customers. The general public. They’re all looking more closely at what companies stand for—their purpose and how they fulfill it. That includes environmental, social and governance (ESG) investments, and scrutiny is even more intense during a deal.
So how do you help your various stakeholders understand what you’re doing with ESG and make sure your commitment to it is clear to all parties in a transaction? Gains have been made in recent years in some areas, such as diversity and inclusion metrics, but in other cases, data can be elusive, making informed decisions harder. Even with information gaps, leaders can and should tell a clear story about their organization’s purpose—indicating priorities, demonstrating investments, acknowledging gaps and highlighting progress. This is an opportunity to show how your ESG initiatives benefit broader society and help grow business. That, in turn, demonstrates your company’s value to other companies and can be a critical factor in a potential deal.
ESG needs to be integrated into your overall investment framework so you’re ready to consider it across a full deal lifecycle, whether you’re a corporate or private acquirer.
Our team is comprised of subject matter specialists with deep M&A strategy, engineering, accounting and sustainability backgrounds to help provide you with a differentiated point of view, and we can work seamlessly with your cross-functional teams (business development, investor relations, legal, sustainability and finance staff).
PwC can help you:
Integrate ESG into your strategies and identify opportunities for growth, enhance reputation, ease access to finance and be competitive in talent acquisition.
Address the growing need of providing high quality ESG data and disclosures to investors and stakeholders and assess ESG risks and value creation opportunities in deals (acquisitions and divestitures).
Develop ESG strategies to maximize access to investor capital during capital raising activities (IPOs, SPACs, Green/Social Bonds).
Create lasting value through ESG initiatives in deals and beyond.
We’re ready to help you take on today’s most pressing business challenges. Reach out and start a conversation today.