ESG aspects impact M&A deal evaluations, risk mitigation and value creation, the report stated. Furthermore, companies involved in M&A should include ESG considerations during the entire deal process to avoid financial and reputational consequences, the report said.
“Acquiring companies with strong ESG profiles can strengthen acquirers by accelerating innovation, expanding into new markets, or diversifying business lines,” wrote Jon Solorzano, ESG counsel at Vinson & Elkins. “Failing to properly assess ESG risks can lead to significant value erosion.”
Read the full report from Vinson & Elkins here
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