Do environmental, social and governance (ESG) factors represent a propeller or an anchor in the M&A process? The answer depends on the acquirer and the steps taken early in the deal-making process. Active deal makers have learned that a compelling ESG story is essential to both inorganic growth and divestiture actions, significantly impacting how much and how fast value can be realized. Just as important, leading companies are realizing that a proactive approach to the full range of ESG considerations can add tangible value – improving risk posture, influencing the price paid for assets, shaping capital market access and costs, boosting valuations and factoring into portfolio management decisions.

In the third installment of A&M’s Your Next Deal Will Be Different series, we examine ways in which a company can leverage ESG tactics to mitigate risks and add value to their M&A transactions.