ESG readiness drives value in Nordic M&A

Our latest Global ESG Due Diligence Study highlights a notable global rise in the prioritisation of ESG within M&A strategies. Dealmakers across regions now recognise ESG as an essential factor in investment decisions and post-deal strategies. This trend is particularly pronounced in the Nordic region with 97% of Nordic dealmakers stating that ESG considerations are on their M&A agenda. In comparison, 81% of global investors indicate that ESG considerations play a role in their M&A decisions, illustrating some alignment in priorities, yet with Nordic investors placing a significantly higher priority on these factors.

ESG maturity adds value to your company

In both the Nordic and other global markets, ESG considerations are seen to add value to M&A targets. Nordic investors are particularly willing to pay a premium for targets with high ESG maturity, with around 70% open to paying extra. The majority are willing to pay a 1-5% premium, and 17% are ready to pay even more (6-10%).

However, none of the Nordic investors are willing to pay over a 10% premium for ESG maturity. While the willingness to pay a premium is also present globally, it is less pronounced, with 54% of investors open to paying such premiums. Interestingly, 5% of global investors are willing to pay over a 10% premium, indicating that while the general willingness to pay is lower globally, some investors outside the Nordics are prepared to pay even higher premiums than their Nordic counterparts.

Every financial investor in the Nordics is guided by ESG due diligence

ESG remains central even after deal closure. In the Nordics, ESG due diligence findings is a key to shaping post-closing strategies. 100% of the Nordic financial investors report a correlation between due diligence findings and their post-closing action plans, with the majority reporting a strong direct link. In comparison, 83% of global financial investors report a similar correlation, indicating that Nordic financial investors are using ESG insights more extensively than their global counterparts to establish strategy after a deal closes.

Similarly, corporate investors in the Nordic region also tie ESG insights to post-closing actions, with 90% reporting a link either to a strong degree or some degree, surpassing the 78% of global investors who report similar levels of integration. Overall, while most global investors, both financial and corporate, integrate ESG due diligence findings into their post-deal strategies to a strong degree or some degree, the Nordics are taking the lead in integrating ESG insights into post-deal strategy.

Read all insights from the study in the report below.