Strong ESG performance impacts deal value and can help drive deal activity for businesses investing in and reporting on key ESG issues.
A business that performs well across all components of ESG may have the opportunity to attract more interest, investment and higher multiples, while companies with weak ESG credentials could be undervalued. Many stakeholders and shareholders apply pressure to their money managers to account for and report on their investment decisions from an ESG perspective — and demonstrating ESG compliance, commitment and transparency naturally brings enhanced deal value while creating value for people and the planet.
KPMG in Canada employs an ESG framework to our deal valuation, which sets out minimum standards that companies are expected to follow and is an integral part of the due diligence process and post-acquisition stewardship. Our professionals work closely across functions to regularly evaluate and enhance potential ESG financing options, identify possible lenders, arrange sustainable finance, and prepare companies for a sale, merger, or acquisition. We can help you integrate ESG into the deal process, helping to ensure the appropriate analysis is done to focus on what’s materially relevant.
