ESG factors are becoming more and more important in M&A deals. Both the legislator as well as other stakeholders (investors, customers, NGOs, employees, the state and society at large) are placing stricter ESG requirements on companies. As a result, ESG aspects have now become significant value-creating factors in M&A deals as well.
In M&A practice, ESG and sustainability aspects are increasingly appearing on equal footing with traditional value- creating factors. At the same time, legal and ethical requirements for corporate governance and investments are becoming more and more stringent.
Our ESG advisory services cover all ESG aspects to be taken care of in the course of an M&A transaction.
As part of the legal due diligence, we examine compliance with legally binding ESG requirements, particularly in the areas of corporate governance, supply chains, environmental and energy law, employment and co-determination law, as well as operational safety, occupational health and safety and product safety law. Here, our clients benefit from our multidisciplinary full service approach. As part of that, we take ESG factors into account, for example, when assessing voluntary commitments (codes of conduct) of the target group. We also coordinate interdisciplinary teams that carry out technical, commercial and environmental due diligence processes, for example, and analyse the corresponding findings.
We likewise advise our M&A clients on the appropriate inclusion of ESG factors when drafting transaction documents. We negotiate ESG-related warranties, indemnities and closing conditions as well as covenants and help our clients take ESG factors into account in the valuation of the target.
After closing and as part of our post-merger integration advice, we assist our clients with the process of integrating the target company into existing ESG structures and with ESG measures to increase the value of the target and to promote the company’s long-term success.