PROFIT ESG IN M & A in the market , whilst building the agility and preparedness required to effectively manage future challenges .”
Taj Lalli , Corporate Finance Director at KPMG UK believes M & A is crucial right now to deliver growth . Business owners and managers are dealing with constraints on a daily basis , be that input challenges from a recovering supply chain , people issues due to well publicised recruitment and retention problems , or global energy constraints . All of this puts pressure on delivering organic growth .
Lalli says despite recent negative economic news , the equity and debt markets remain supportive and there is plenty of capital to support M & A strategies that deliver on the strategic imperative to achieve net zero , accelerate growth , or provide access to new technology , supply chains and geographies .
“ Change is being driven from all sides ,” says Lalli . “ In the financial markets , lenders and shareholders are actively seeking ESG opportunities , and crucially , presenting companies with the opportunity to reduce their cost of capital .
“ Within organisations , corporate values and purpose are also driving change . We ’ re seeing that as a key battleground in the recruitment and retention of staff .”
M & A can be an accelerator for improving a company ’ s ESG profile and taking advantage of the current ESG tailwinds , according to Hoffman .
“ This can be the case when M & A activity positions the company with access to new capabilities and assets to grow products / services in markets that are positioned to thrive in a low carbon , sustainable economy ,” she says .
“ Mergers also have the potential to result in opportunities to deliver on operational
“ In the financial markets , lenders and shareholders are actively seeking ESG opportunities , and crucially , presenting companies with the opportunity to reduce their cost of capital ”
TAJ LALLI CORPORATE FINANCE DIRECTOR , KPMG UK
and financial synergies , which can also lead to carbon footprint ( amongst other ESG ) synergies for the MergeCo . M & A activity is also increasingly serving as the impetus for the new combined entity or separated entities to redefine ( and increase ) the level of ambition of their ESG commitments .”
Understanding what ESG means is crucial to success One of the issues with ESG is a clear understanding of what ESG actually means – and this varies depending on the business .
“ ESG is a very broad term and how it applies to businesses will depend on
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