Integrating ESG considerations into the due diligence process is crucial. It helps identify potential threats to business transactions, enables comparison with industry benchmarks and best practices, highlights deficient practices, and identifies key ESG opportunities for improvement post-acquisition.
BDO's Transaction Services teams are well-equipped to assist investors and vendors in developing and executing their deal strategy, incorporating ESG factors.
Our ESG-related due diligence services include:
Identification and analysis of the key ESG criteria that are relevant for the target company and derivation of the liabilities/risks or opportunities;
Comparison of ESG guidelines, including instructions for actions related to peer group and sector-specific best practice approach;
Analysis of risks related to the impact on intangible assets, such as goodwill. Considerations are given to risks related to reputation, brand, market confidence and customer and business relationships;
Analysis of the financial impact of the identified risks on the financial position and performance (cash flow, refinancing and transaction).
ESG-related services can be seamlessly integrated into existing due diligence workstreams, including financial, commercial, regulatory, tax, and legal reviews.