ESG (Environment, Social, Governance) is driving businesses globally to re-think, re-calibrate and sometimes even re-invent their business models. In many cases, the results of these thought processes include M&A. Think of disrupted industries, unsustainable business models, supply chain issues requiring mergers, acquisitions, joint ventures, or divestitures to future-proof a company.
Even beyond such sustainability-driven M&A, ESG’s impact on the global M&A market is widespread. Buyers of any kind of business need to make sure they are not acquiring toxic operations undermining their ESG policies and ambition. Ensuring this requires modifications to two principal areas of M&A: the due diligence review of the target business and the transaction documents governing the deal.
This briefing summarizes some thoughts on where ESG is driving M&A deal technology.