The rise of ESG in the M&A process

29 June 2021

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Mergermarket is pleased to present Global dealmakers series 2021 - Deal breakers and opportunity makers: The role of ESG in M&A, published in association with Baker Tilly International.
Dealmakers are more focused on ESG than ever before. In large numbers, many confirm that ESG issues are critical both to their own organizations and also to the way they approach potential transactions. Most say they have even walked away from at least one deal on ESG grounds; many say their view on valuation has been materially affected by ESG considerations that have emerged during due diligence.
This report dives into the trends around ESG priorities and opportunities as the world emerges from the depths of the pandemic.  
Key highlights include:
  • ESG priority: 65% of dealmakers in our survey say ESG is important when considering investments and M&A
  • Positive impact: 52% say their ESG investment strategy has had a positive impact on overall investment returns
  • Deal or no deal: 60% say they have walked away from an investment due to a negative assessment on ESG issues at a potential target
  • New policies: Regulation is the top driver pushing the ESG agenda in most markets as dealmakers adapt to new policy regimes