Private equity has a reputation for buying underperforming or
undercapitalised businesses and rapidly turning them into
high-value assets. But in today's decarbonising, digital
economy, yesterday's promising target can turn into a
liability. Assessing where tomorrow's growth will come from has
become increasingly complex, requiring a wider range of risks and
opportunities than ever before to be scrutinised during
transactions.
Beyond legal and financial due diligence, other factors need to
be considered prior to the commencement of a transaction as they
can have a significant impact on deal value and risk exposure to
the acquirer. With climate change at the top of the risk agenda and
growing financial incentives to decarbonise, environmental, social
and governance (ESG) considerations are shaping assessments of
future value. At the same time, both value and risk are
increasingly found in digital assets - from proprietary or personal
data to game-changing platforms