ESG within M&A

Even the strongest are stronger together. That has always been our credo at Lundgrens. To help us achieve this, we strive to incorporate environmental, social and governance (ESG) factors in our counseling. We believe that a strong ESG focus will create value for our clients.

M&A

1. ESG Due Diligence Partnership: In connection with M&A transactions, we assist the target, buyer, and seller sides with planning and implementation of ESG due diligence processes, including delimitation of relevant areas and assessment of risks. It is assessed during a tailor-made due diligence process, including if necessary with the assistance of external partners within certain EGS areas, how relevant ESG areas are handled.
Depending on the assignment, we provide relevant recommendations for integration, risk minimization, impact on valuation, etc.

2. Preparing a company for sale: A combination of environmental, social, and governance pressures is currently driving private equity funds and firms to modify their primary strategies quickly. Following this, at Lundgrens we believe that potential M&A deals will increasingly be examined on ESG parameters. Implementation of ESG as a part of preparing your company for sale will result in a reduction of potential risks, establishment, and maintenance of shareholder trust, and an increase in the company’s sustainability. Consequently, at Lundgrens we seek to implement a strong ESG focus when advising our clients on the preparation for an M&A process in order to increase the value of the target company, increase investor attraction, profit, and productivity as well as reduce financial risks.

Corporate

1. Incorporation of Recommendations for Corporate Governance:  Governance in the light of ESG concerns how a company is managed by the top executive offices. As part of our corporate counseling, Lundgrens advise on the content and implementation of The Danish Committee on Corporate Governance’s Recommendations for Corporate Governance. The Danish Committee on Corporate Governance has a strong ESG focus within the newest version of Recommendations for Corporate Governance and has attached great importance to the company’s long-term value creation, increased dialogue with shareholders, sustainability, and stance on companies’ broader purpose and vision.

2. Equality, diversity and inclusion: As a part of our corporate counseling, Lundgrens encourage companies to include equality, diversity, and inclusion within their management and board composition.

3. Employee representation: We advise companies on employee representation within companies’ managing bodies.

4. Remuneration structures: We advise companies on remuneration structures for executives as well as employees. We believe that incentive schemes and employee share plans create engagement, transparency, and value for many companies.

5. Shareholder and investor proposals on ESG matters: We assist shareholders and investors as well as companies in the administration and execution of shareholder proposals on ESG matters.