KPMG survey: ESG-related concerns in M&A derailing deals


Material findings related to environmental, social, and governance (ESG) due diligence have disrupted mergers and acquisitions (M&A), forcing companies in the United States and abroad to back out of deals, according to a study from Big Four accounting firm KPMG.

KPMG’s “ESG Due Diligence Survey,” conducted earlier this year, featured insights from more than 200 M&A practitioners in the United States and Europe, Middle East, and Africa (EMEA), the firm said in a press release.

Nearly 60 percent of U.S. corporate investors said their deal was canceled based on material findings during ESG due diligence, while 46 percent of financial investors’ deals were either canceled or saw a price reduction, according to a copy of the survey results viewed by Compliance Week.

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