ESG due diligence - M&A- & financing process

In today's market, it is essential for buyers and investors to analyse not only financial risks and rewards, but also the potential negative impacts of Environmental, Social and Governance (ESG) activities. Identifying ESG factors early can help you seize strategic opportunities and mitigate potential risks. It becomes imperative that your organization complies with increasingly stringent regulations and industry standards in the field of sustainability. ESG due diligence helps develop a robust sustainability strategy that contributes to the growth and development of your business. Integrating ESG into your due diligence can significantly increase the value and attractiveness of your organization or acquisition.

Start integrating ESG aspects into your due diligence process right now, this can be integrated with well-known workstreams such as financial, tax and legal due diligence. Work with Forvis Mazars experts: engage our experts to conduct an in-depth ESG analysis. Share the results of your ESG due diligence with all relevant stakeholders to foster trust and transparency. In short: by taking ESG due diligence seriously, you can not only manage risk, but also create value and position your organization for sustainable growth and success.

Our approach to ESG due diligence

If you are planning to sell or buy a company, you can call on the expertise and market knowledge of our sustainability experts for every possible transaction. Our experienced consultants identify any sustainability risks within your company or in the event of an acquisition at an early stage, significantly increasing the efficiency of your buying and selling processes. As a buyer or seller, you benefit from the fact that sustainability aspects are directly taken into account during the M&A process, in addition to the tax, legal and financial due diligence aspects. Our full-service approach allows us to integrate the findings of our sustainability experts with the findings from a tax, legal and financial perspective. This saves time and money and, more importantly, avoids financially relevant liabilities or, in the worst case, risks to your reputation. Including ESG aspects in the due diligence process has a huge positive impact in the long term. Proper integration and optimization of sustainability aspects, for example related to sustainable financial transition, is crucial for the valuation of your investment.

Our tools and solutions

We assess ESG issues for you as part of the 'Traditional' financial due diligence’ and if desired, also in addition to our tax and legal due diligence. This gives you a complete picture of the organization, without having to switch with different parties. ESG-related aspects of the organization and the organization's operations may also be specifically addressed in our assessment and analysis of ESG opportunities and risks. By using the ESG Quick Scan, we ensure that no important parts are forgotten. We take ESG risks into account and assess the potential negative impacts they may have on your company's operations and value. Our specially developed tools support you with simulations and scenario calculations to assess the consequences of changes in the various framework conditions and variables. In addition, our audit allows us to identify opportunities to potentially increase business value and optimize the ESG rating.

We offer you the following services as part of our ESG-related due diligence investigation:

• Definition of the scope and depth of the due diligence investigation based on the current legal ESG and sustainability requirements
• Running a ESG Quick Scan
• Analysis of the Legal aspects of the company, in general but also with regard to liability in the chain (CSDDD)
• Identification and classification of key sustainability KPIs
• EU-Taxonomy eligibility scan
• Qualification and quantification of sustainability opportunities and risks
•  Analysis of the sustainability and climate strategy  
• Assessment of the business model (e.g. the impact of CBAM) and planning with regard to ESG aspects
• Development of possible risk mitigation measures

You benefit from due diligence that covers all essential ESG aspects and are prepared for things that don't seem important at first glance. Our multidisciplinary teams are also happy to assist you with ESG-related legal or tax issues.