Sustainability has added to the already challenging environment for valuations and exits.

Prospective buyers and investors are integrating sustainability into the acquisition process and assigning cost and/or risk to companies that have unaddressed or under-addressed sustainability capabilities.

The results is that due diligence efforts will increasingly look at quantitative and qualitative inputs related to sustainability as a basis for valuation.

On the other hand, unplanned sustainability investments can complicate the ability to accelerate financial performance. This presents a challenge for PE and VC firms and their respective portcos:

• How do you assess and forecast sustainability risk in upcoming acquisitions that needs to consider sector-level and company-specific risk?
• How do you assess portcos sustainability capabilities in a way that can enable surgical investments to effectively manage investments?
• How do you plan for and execute due diligence to maximize value?

Cairnbridge Advisors helps you put in place proportional sustainability capabilities to minimize risk as sustainability becomes a standard part of the acquisition process.