Construction and Engineering Acquisition
We specialise in helping investors acquire businesses within the construction, engineering, and materials sectors while integrating Environmental, Social, and Governance (ESG) principles throughout the acquisition process. Our approach ensures that every deal aligns with modern sustainability standards, delivering both financial and social value.
Phase 1: Market Research and Opportunity Identification
Identify acquisition targets with strong Environmental, Social, and Governance (ESG) potential or areas for improvement.
ESG Screening: Develop criteria to assess the environmental performance, social impact, and governance practices of potential companies.
Sustainability Profiling: Focus on companies that already hold green certifications, have implemented low-carbon initiatives, or employ sustainable practices.
Social Responsibility Check: Identify companies with fair labour practices, community engagement, and strong corporate governance.
Risk Assessment: Identify companies that may pose ESG risks, such as non-compliance with environmental regulations or poor labour practices.
Phase 2: Due Diligence and Business Assessment
ESG performance and risks of the target company to ensure they align with sustainability goals.
Environmental Audit: Assess the company’s carbon footprint, energy usage, waste management practices, and compliance with relevant environmental regulations.
Social Assessment: Evaluate labour practices, employee welfare, and community engagement initiatives to assess their effectiveness and impact.
Governance Review: Verify transparency, adherence to ethical practices, and board diversity.
Compliance Verification: Ensure alignment with industry standards, certifications (such as LEED or ISO), and local regulations to maintain compliance.
Sustainability Gap Analysis: Identify areas where ESG improvements can enhance the company's value.
Phase 3: Deal Structuring and Negotiation
Incorporate ESG metrics into the negotiation process to enhance value and minimise risks.
Valuation Adjustment for ESG: Factor in sustainability metrics and potential improvements when determining the acquisition price to reflect the overall value of the target.
Incentivised Structuring: Include ESG performance clauses that reward sustainable practices post-acquisition.
Risk Mitigation Agreements: Outline contingencies related to ESG risks, including environmental liabilities and regulatory compliance.
Stakeholder Engagement: Communicate the ESG value proposition to investors and stakeholders as part of the overall negotiation strategy.
Phase 4: Transaction Execution and Closing
Ensure a smooth, compliant transfer of ownership with a focus on maintaining or enhancing the company’s ESG profile.
Compliance Confirmation: Verify that the acquired company adheres to environmental and social regulations throughout the acquisition and transition process.
Sustainability Handover: Ensure continuity in green initiatives and community programs following the acquisition.
ESG Communication Plan: Inform stakeholders (employees, local communities, and investors) about the new ownership’s commitment to sustainability.
Governance Integration: Implement ethical practices, governance policies, and reporting structures as part of the transition process.
Phase 5: Post-Acquisition Integration
Embed ESG practices into the daily operations of the acquired company to drive long-term value.
ESG Performance Tracking: Implement systems to monitor carbon emissions, social impact, and governance improvements.
Training and Capacity Building: Educate the acquired company’s workforce on sustainable practices and ethical standards.
Continuous Improvement: Regularly review and update ESG strategies in line with industry benchmarks and regulatory changes.
ESG Reporting: Develop a transparent reporting framework to effectively track and communicate progress.
Community Engagement: Foster partnerships with local stakeholders to strengthen the company’s social license to operate.