Capturing value from sustainability opportunities after M&A

Many deal makers today realize there’s a lot of value to capture from sustainability opportunities. But to translate that ambition to reality, we believe they need to come up with a meticulous game plan at the start of the deal cycle.

In pursuing mergers and acquisitions (M&A), an increasing number of dealmakers are taking environmental, social, and governance (ESG) factors into consideration when assessing value creation opportunities. The KPMG LLP 2023 US ESG Due Diligence Study revealed that 90 percent of investors with rigorous ESG due diligence use their findings to guide an action plan after closing the deal.

But how do you convert sustainability opportunities into improved financial performance and long-term growth? In a new KPMG paper, we argue that generating value at exit is more likely with a comprehensive, cohesive roadmap and implementation plan. Moreover, the earlier these are in place—preferably during due diligence or at the start of the hold period—the better.