Generating upside from ESG: Opportunities for private equity
Leading PE firms know that managing ESG factors helps create value. PwC’s newest survey looks at the industry’s evolving approach—and highlights prospects for further gains.
Value Creation
Turning the bottom line into a bigger picture
As businesses around the world continue to adapt to unprecedented challenges, the traditional view of value is due for an overhaul. A strategic pivot. A broader, bolder perspective.
But in pursuing a holistic transformation, which levers of growth should you pull to achieve long-term, sustained outcomes?
Whether you’re targeting an acquisition, considering a divestiture or looking to improve your enterprise performance, a Value Creation mindset goes beyond the expected to reveal untapped sources of growth.
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Value Creation with PwC
Empower your purpose with an intelligent purchase
Companies adapting to a COVID-changed world are rushing to reconfigure their businesses and capabilities, fueling M&A activity. But history shows that deals don’t always create value. How can corporate leaders ensure they are allocating capital to create sustained outcomes?
Our research reveals that acquisitions based on a capabilities strategy will generate the best returns. To avoid value loss, learn how to integrate capabilities consideration into impactful deal-making.
What about non-financial drivers of value?
For businesses looking for innovative growth solutions, it’s no longer enough to focus on financial drivers of value.
To create, protect and sustain enterprise value, executives must do more—and consider both a diverse set of stakeholders and a broad set of intangible considerations such as resilience, societal changes and ESG opportunities.
How can a company’s values be activated to drive value creation? Discover five actions that leaders can take to execute effective strategies in the context of a broader value creation ecosystem.
Read more on today's VC ecosystem
How can you create value amid disruption? Use a value bridge.
For companies surrounded by economic uncertainty mixed with a competitive surge of deals worldwide, creating value is a real challenge. A value bridge can be used to identify actions that can prevent value loss and preserve value in times of disruption, while also strengthening your company's competitive positioning to help it come out ahead.
Every company situation is unique, so the application of the value bridge will vary by sector and for different circumstances.
Click through some examples of value bridge levers below.
Value decline
Impact
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Value preservation
Initiatives to protect company and company value
Gap
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Value creation
Strategic, operational and financial initiatives to create value
Value prior
to COVID-19
to COVID-19
Value after
COVID-19
COVID-19
Value after
preservation action
preservation action
Full potential
value
value
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How we can help
Exploring unexpected angles, we work with you to define new approaches to value creation—from making your business more resilient to bolstering your ESG framework. We look holistically at all aspects of an organisation’s performance to propose enterprise-wide transformation initiatives or smaller scale optimisation programmes.
Driven by data, our tech-powered teams use AI, machine learning and cutting-edge analytics to build scenarios for your value chain. Our expertise in finance, operations, deals, strategy, tax and accounting, enables us to go wide and take the long-view to ensure your business is positioned to deliver sustained outcomes for the future.
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Global M&A Industry Trends
Now is not the time to fall out of love with M&A. We believe transformation and transactions will be at the forefront of CEOs’ value creation strategies in 2023.
Act now to recover
As we manage the fallout and uncertainty of today’s challenging environment, a strong plan to maximize value creation is more important than ever. We help you act fast so you can stay ahead and own every moment.
Private equity’s ESG journey: From compliance to value creation
Multiple crises over the past 18 months have delivered a stark wake-up call to the world. If we’re going to prevent further pandemics, reduce the risks of climate change, build a more equitable society and still generate growth, it’s clear that we’ll have to create more sustainable economies and systems.
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The CSRD is resetting the value-creation agenda
Executives can use the EU’s Corporate Sustainability Reporting Directive to better understand how sustainability factors affect value creation.
Will ESG factors create or destroy value in your next deal? Six orange flags for dealmakers
Growing emphasis on nonfinancial factors in M&A requires expanded due diligence to limit risk and maximize value.
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This article looks at how Specialisation, Scarcity, Humanity and Rivalry are creating workforce upheavals for businesses today that companies must factor in when creating their workforce strategy.
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