ESG due diligence for companies

A recent study by KPMG examined the potential impact of findings in the ESG due diligence process in M&A deals (mergers or acquisitions). More than half of the respondents indicated that ESG warning signs can be a deal stopper. 53 % of respondents indicated that material ESG due diligence findings have led to deal cancellations and 42 % indicated that they have led to purchase price reductions.

The study also suggests that the frequency of ESG due diligence is likely to increase in the future. However, there are still major challenges in conducting ESG due diligence, as there is still a great lack of data on ESG due diligence.

Entrepreneurs who are thinking of selling their company in a few years or who are possibly facing a merger or takeover must therefore think in good time about how they can integrate ESG criteria into their credible company. This way they can avoid a bad valuation or expect a better price. At M&P Climate, we support companies in meeting ESG due diligence requirements.