Over Half of M&A Dealmakers Have Cancelled Deals on ESG Due Diligence Findings: KPMG Survey

(ESG Today) ESG considerations are increasingly being integrated into the dealmaking process by M&A professionals, according to a new survey by global professional services firm KPMG, which found that over half of respondents reported that they have cancelled deals due to material findings during ESG due diligence, and that nearly two thirds of investors would pay a premium for companies aligned with their ESG priorities.

For the study, KPMG surveyed 200 U.S. ESG practitioners including corporate investors, financial investors, and M&A debt providers.

The survey found that three quarters (74%) of professionals are already integrating ESG considerations as part of their M&A agenda, with the identification of ESG risks and opportunities given as the top reason for conducting ESG due diligence, by 46% of respondents, followed by requirements by investors, cited by 19%, and preparation for regulatory requirements by 14%.

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