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ESG Due Diligence in the M&A process and in financing
Here you will find an overview of our services and solutions related to ESG due diligence and valuation.
At the national and international level, lawmakers have recently introduced various regulations in the field of ESG, for example, CSRD, Taxonomy, TCFD, and the German Supply Chain Act. Much is changing, and more changes are expected. Management needs to keep a closer eye on environmental, social, and governance issues, and make these a priority. Performing a complete assessment of the company’s stance and exposure on these issues, including periodic audits, has now become routine for corporate management. After all, companies must be aware of the potential future reputational and liability risks and their associated costs and must consciously take steps to counteract them.
In the event of a company sale or purchase, ESG due diligence ranks firmly alongside financial due diligence, tax due diligence, and legal due diligence in importance.
Making "soft" issues tangible
Although the environment, social, and governance issues at first glance appear to be "soft" issues, appearances can be deceptive. It is precisely their intangibility that makes it all the more important to examine the future impact of ESG issues on the company's business model and future performance. These aspects should be more strongly considered in business decisions because they are becoming increasingly important in transaction and financing decisions. However, as existing ESG standards are often formulated in general terms and are rarely sufficient for an assessment, expertise and market experience are required.
ESG due diligence, the associated effort, and the use of external consultants are worth the investment. The tools used to assess sustainability are varied. Their use differs according to analysis method, analysis depth, available data, and objective. Corporate data can thus be examined very specifically on all aspects of ESG to shed light on their influence on business development, corporate value, and the material design of a possible business transaction.
How Forvis Mazars can assist you:
Our experts will be happy to help you to determine how the various regulations will affect the particular business model. The respective strengths and weaknesses, as well as all the opportunities and risks, are identified and analysed.
Contact
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