Global investors ready to pay for assets with better ESG

A&M is rapidly expanding since it offers a mix of restructuring, forensics and deal-making

- Mansi Verma & Ranjani Raghavan

Global investors are increasingly prioritizing assets with a strong environmental, social and governance (ESG) footprint, driving up their value and putting ESG at the forefront of deal-making strategies in India, according to a top executive of global transaction advisory firm Alvarez & Marsal (A&M).

"If you're buying into a company with a better ESG footprint, the market's going to put a greater premium on that when you go to exit... I have clients who in their post-transaction value creation blueprint require ESG as part of that," Paul Aversano, managing director and global practice leader of A&M's global transaction advisory group, told Mint in an interaction during his recent visit to India.

Aversano co-founded and leads the firm's global transaction services group, US corporate M&A (mergers and acquisitions) transactions group and the US ESG business. "85-90% of the financial buyers said they were willing to pay more for a company that had an improved ESG footprint. Doing well financially as a business is also not mutually exclusive to doing well in other areas," he added.