Fryderyk Dudzinski
Sustainability is no longer just a marketing trend – it increasingly influences the economic value of companies. Especially in M&A transactions, buyers are paying closer attention to ESG criteria (Environmental, Social, Governance). Companies that perform well in these areas increase their attractiveness – and often their sale price. But how exactly does ESG factor into valuation? And how can entrepreneurs improve their ESG readiness?
ESG stands for:
More and more buyers – especially family offices, private equity funds, and publicly listed companies – use ESG as a key valuation dimension.
Example: A packaging manufacturer with climate-neutral production achieved a 15% price premium during the sale – buyers viewed ESG as a competitive advantage.
Studies show: Sustainable companies often have more stable cash flows and are better prepared for regulatory changes – a clear advantage in valuation.
Companies lacking in ESG may face valuation discounts or even failed transactions. Common shortcomings include:
Case example: A metal processing company lost a strategic buyer due to undocumented labor conditions at supplier sites.
Sustainability is not just a compliance task – it’s a business opportunity.
What is seen as an advantage today will become tomorrow’s standard: The EU taxonomy, ESG reporting obligations, and the German Supply Chain Act are setting clear frameworks. Buyers now expect ESG competence – and penalize its absence.
Sustainability is no longer a “nice-to-have” – it’s increasingly a prerequisite for business success.
ESG factors are gaining massive importance in the M&A process. Those who integrate them early into their strategy increase their valuation potential, reduce risks – and become more attractive to future-oriented buyers. Sustainability pays off twice: for the planet and society – and for company value.
Elisabeth Schibler
M&A Manager
We are available Monday to Friday from 9.00 to 20.00 for a free consultation.
Email:
Phone:
CARL Finance GmbH Rosenstraße 16 10178 Berlin
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