– NOVEMBER 3, 2008 –
What: “How Green is the Deal? The Growing Role of Sustainability in M&A”
When: Available immediately
Where: www.deloitte.com/us/howgreenisthedeal
Details: Mergers, acquisitions and divestitures have been ““ for the most part ““ largely unaffected by the green trend. However, recent deals in industries ranging from energy to retailing have demonstrated that sustainability can affect both the viability and the ultimate value of deals. Companies are seeking to gain support for acquisitions by committing to actions that will help address issues which affect the environment. Others are willing to pay a premium earnings multiple for companies because of their sustainability leadership.
“In today’s economic and regulatory environment, companies that have strong corporate responsibility and sustainability programs in place will likely be rewarded for their ability to manage the risks and opportunities associated with corporate responsibility and sustainability,” said Rod Millott, partner, M&A Transaction Services, Deloitte & Touche LLP. “Those that do not have such programs in place can expect to face increasing regulatory and marketplace demands for change. It is clear that greater consideration of sustainability-related issues when evaluating potential M&A transactions will help improve the likelihood of the success of the deal.”
Kathryn Pavlovsky, a principal with Deloitte Financial Advisory Services LLP and a leader of Deloitte’s Enterprise Sustainability group, noted that acquiring companies will want to know if they are taking on sustainability risks or opportunities. “Divesting organizations will want to know whether their sustainability profile will contribute to a premium or discount price,” said Pavlovsky.
Millott and Pavlovsky are available for commentary and further discussion about the paper. Please contact John La Place at +1 212-492-4267 or [email protected], or Cory Ziskind at +1 212-492-4408, or [email protected] to schedule an interview.
About Deloitte
As used in this document, “Deloitte” means Deloitte LLP and Deloitte Services LP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
