“ We see great potential in the ESG-focused transformation of companies from a value perspective – already , certain PE investors are leading the change in this ”
SVEN KLEINDIENST PARTNER , RESTRUCTURING , PERFORMANCE , TRANSFORMATION & TRANSACTION TEAM , ROLAND BERGER
“ Currently , we still see a divide in the way ESG is reported , ‘ lived ’, and most importantly further developed across organisations ,” he says . “ While many still see it as more of a regulatory mandate , a growing number of investors are starting to see the ESG space as a chance to create additional value . Proper ESG due diligence lays the groundwork for a successful investment and it enables the investor to understand the status-quo as well as the ESG potential of the company ."
New opportunities in ESG So what should companies consider when looking for ESG-focused M & A opportunities ? Hoffman advises corporates to start with their overall strategic priorities , where they want to expand , the gaps they have and then consider how to further accelerate this through M & A .
Companies should use a combination of defensive and offensive M & A strategies to capture the full spectrum of ESG opportunities . This will involve asking themselves key questions such as what demand for their products and services will look like in 5-10 years , how can they pivot their business strategy to deliver value while gaining a competitive edge , and how
36 November 2022