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Regardless of the controversy surrounding ESG, as a framework, it remains important in the public markets and in M&A. Investors continue to want the material ESG aspects of an investment to be evaluated.
Transitioning to employee ownership and governance requires strategic planning and understanding of market dynamics among employees. When employees are entrusted with oversight of the business, it’s important that they grasp how market forces and competitive pressures influence business decisions.
The landscape of employee ownership is diverse, with several models offering pathways to shared ownership and economic inclusion.
Over the last 40 years, Private equity (PE) has emerged as a significant influence in the capital markets and represents an option for selling shareholders that should be explored. In this article, we outline the major features of the industry, what drives decision-making, and the strengths and drawbacks of selling to PE. We hope this aids in decision-making and gives the reader an understanding of the nature and variety of firms in the industry.
Research has shown that as many as 70-80 percent of all mergers fail to meet their original business and financial goals, which is why understanding culture and leadership between organizations during the sale process is so important (and where stakeholder-value is created or destroyed).
Welcome to our Q1 2024 report. As an organization committed to Environmental, Social, and Governance (ESG) principles, we extend our gratitude to both our continuing client relationships and our new clients. Your dedication to conducting business with a conscience is the cornerstone of our mutual success. We remain dedicated to supporting responsible businesses - helping them create enterprise value while protecting their purpose, mission, and core values – through capital raising, ownership transition, and/or strategic acquisitions. Those who share our vision of responsible and conscious business and those who are interested in doing the right things for all stakeholders continue to inspire us and the work we do.
Mergers and acquisitions (M&As) are more than just strategic and financial moves aimed at goals like shareholder liquidity, diversifying revenue streams, increasing market share, achieving economies of scale, or entering new markets. M&A transactions deeply affect the people involved in both organizations, making it crucial to address the “human issues” with intention and care. This is vital to the overall success of the transaction.
This blog explores the critical aspects of merger integration planning, highlighting why it’s important to start these conversations before signing a letter of intent.
“In the land of banking, quite a curious thing,
Love as a skill, in business did spring.
Not your typical tale, as you might suppose,
A dash of compassion, the story arose.
This LinkedIn article written by Jennifer Ploskina, a Business Development Director of BI Worldwide references a book that we endorse called Conscious Capitalism. The book and associated movement are both optimistic and cautionary.
The emergence of Purpose Trusts presents a transformative opportunity for companies to align their values and purpose with their ownership structure and preserve the company’s mission post-sale.
As Environmental, Social, and Governance (ESG) factors have gained traction in the world of finance, one area where ESG is increasingly being incorporated into the process is in mergers and acquisitions (M&A). ESG can create value and mitigate risk in M&A transactions, benefitting it brings both acquirers and target companies.
Whether founders and owners are looking for strategic partners, financial partners, selling or recapitalizing their business, using a purpose-driven lens to identify values-aligned investors is in both parties' best interest. Once identified and agreed upon, these interests can be included in the transaction structure or legal documents such as term sheets, LOIs, conscious contracts, and transaction documents.
ESG can play an influential role in the due diligence process of M&A transactions. ESG due diligence can help buyers identify ESG-related risks which may impact the overall deal structure and valuation. Working with advisors prior to going to market enables sellers to ensure that they have appropriate regulatory licenses and permits to minimize the risk that a potential buyer’s diligence would result in a decreased purchase price.
After ESG factors are reviewed during the due diligence process and evaluated when negotiating certain aspects of the deal, there are a few different ways to ensure ESG success in M&A transactions after both parties sign on the dotted line.
After ESG factors are reviewed during the due diligence process and evaluated when negotiating certain aspects of the deal, there are a few different ways to ensure ESG success in M&A transactions after both parties sign on the dotted line.
In a major development in the public markets, the Securities Exchange Commission Asset Management Advisory Committee issued a preliminary recommendation that the commission require the adoption of standards by which corporate issuers disclose ESG material risk. The EU has already passed a corporate sustainability reporting directive, which takes effect in 2023.
Environmental, social and governance (ESG) principles have an increasingly prevalent impact on the negotiation of M&A transactions. To successfully negotiate an ESG M&A transaction, document the relevant ESG findings and provide an analysis of potential legal risks and exposure associated with any related issues.
EPOCH Pi’s quarterly update on the latest insights on impact companies, venture capital valuations, U.S. private equity deals and more. In the second quarter of 2021 business transactions and trends shows continued recovery as institutional investors moved away from conservative decision-making they adopted in 2020 and increased their alternative asset allocations.
Investors are becoming more and more concerned with ESG metrics that can protect and maximize value and are considering the impact of such matters in their screening process, transaction risk mitigation, due diligence and other strategic decision-making.
When developing the value of a business, quantitative factors like revenue growth, margins, and forecasts are only one part of the puzzle. Intangibles — qualitative value drivers — are equally important as they help to paint the complete picture of your business and enhance business value so you are able to maximize your business's valuation.
The first quarter of 2021 has seen the continuation of general business trends brought about by the COVID-19 pandemic. We've pulled together the following insights on how conscious companies — enterprises who seek to make an impact beyond profit on environmental, social or governance (ESG) issues — have performed in Q1 2021.
At some point, raising capital may become a necessity for many companies. Whether you’re looking to expand organically into new markets through additional hires, through acquiring another company, purchasing additional business assets, investing in the supply chain, or just need help maintaining daily operations, there are a few things business owners should keep in mind when setting out to raise capital.
ESOPs have been found to be more resilient than non-ESOP companies in retaining jobs, benefits, and workplace health safety during economic crises and recessions. With the fallout from the COVID-19 pandemic still ricocheting through the global economy, establishing an employee stock ownership plan could be a good option for selling owners, companies and employees for the long-run.
Joe Biden has been a supporter of Impact and ESG investing having championed these initiatives in the Obama Whitehouse. What emerged as a nascent trend in the 2008-2010 downturn has blossomed over the ensuing years and is sure to be catapulted to new heights by the Biden Administration that comes to office amidst growing awareness that people want a more inclusive economy with more equitable access to opportunities.
While we’re proud to be part of the B Corp movement, our mission and values have always been our north star; getting a certified helped to add a level of formality by allowing us, our clients and our peers to measure that commitment. Now, more than ever, it’s important to strengthen that commitment and to uphold the standards that we set for ourselves in order to support and better our communities as we work through crises and societal forces changing our vision of how business should operate.
While M&A tactics are an attractive option for companies big and small, merging two entities is harder than it looks. And when deals don’t live up to expectations, misalignment of company culture is usually to blame. Company culture is effective and sustainable when it produces results that exemplifies a healthy and productive workplace. But unlike calculating a company’s performance how does one measure culture?
The Global Impact Investing Network (GIIN), a non-profit organization focused on increasing the scale and effectiveness of impact investing with the intention of generating a measurable social and environmental impact alongside financial returns, recently launched an impact measurement tool by the name of IRIS+ .