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. 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.
Our sustainability experts are specialized in identifying ESG risks and opportunities as part of the deal process. Our 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.
How we can help
KPMG ESG due diligence professionals can provide the following services for business:
- Overview of how emerging social and environmental megatrends are likely to affect the company and its market
- Comprehensive assessment of the business's material ESG risks, liabilities and opportunities
- Benchmarking of the company's ESG policies, procedures and performance against peers and sector best practice
- Assessment of compliance with national regulations and international treaties
- Insight into how the company's ESG performance could affect its most valuable intangible assets including reputation, brand value, trust and relationships
- Estimates of how potential liabilities could affect costs, cash flow and the deal timeline
- Recommendations on adjustments to the valuation
