In today's business world, issues like child labor, carbon emissions, fair tax and corruption bring complex and costly risks as well the opportunity to gain competitive advantage by doing things differently.
In short, the way a company handles environmental, social and governance (ESG) issues can affect its long-term performance and its valuation.
That's why, in today's merger and acquisition (M&A) market, ESG due diligence can seal the deal or break it.
In a recent global survey of private equity general partners, over half (54 percent) had reduced a bid price after ESG due diligence and one third (32 percent) had increased one.
So it's no surprise that comprehensive ESG due diligence is now a core part of the deal process. A complete view of all relevant risks and opportunities is critical in order to negotiate the right price and the right terms for a deal.
KPMG member firms have a network of sustainability experts specialized in identifying ESG risks and opportunities as part of the deal process. Their due diligence regularly results in material adjustments to company valuations in an M&A context.
Our ESG experts work side-by-side with financial and legal experts in KPMG Deal Advisory to offer buy-side, joint venture and sell-side clients a truly integrated and efficient due diligence service at every stage of the transaction.
KPMG ESG due diligence professionals can provide the following services for business:
Find out more information by downloading the brochure below.