Sat, Aug 20, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: ESG's impact on M&A

Wednesday, July 27, 2022

By: Christopher Auguste, Alan Friedman from U.S. law firm Kramer Levin.

Environment, social and governance (ESG) or "sustainability" factors are criteria that are used to measure a company in a way that is not typically included in the company's financial statements. For example, ESG can include examining a company's (i) compliance with climate change mandates or carbon limits; (ii) stance on human rights, including with regard to its suppliers or distributors; or (iii) organizational and management structure. Traditionally, ESG has been underutilized as a tool in M&A transactions, but recent overall trends have brought these factors to the forefront as a method for both mitigating risk and enhancing value. As we will dive into below, ESG in M&A is important to consider - not only for potential buyers but also for potential sellers and their owners.

I. Current Uses of ESG in M&A Transactions

The vast majority of M&A transactions already consider and are conscious of certain ESG factors. This is most common during the fact-finding due diligence process. Standard in this process is the disclosure of material items that can cause future liabilities for the buyer, such as possession or disposal of hazardous materials that could violate environmental laws, or potential violations of labor or employment laws. For buyers, this helps mitigate risk as these potential sources of liability can be drafted around, while for sellers, having this surface-le......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  2. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  3. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du

  4. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  5. Opalesque Exclusive: This European mezzanine debt strategy offers equity-like returns with downside protection[more]

    B. G., Opalesque Geneva for New Managers: Mezzanine financier SIG-i operates in a relatively uncrowded space by proactively manufacturing financing solutions as an alternative to traditional debt and equity instrume