Project Overview
Bilancia supported a private equity investor in conducting ESG due diligence for a proposed manufacturing-sector acquisition. The engagement provided a structured assessment of material environmental, social, and governance considerations to inform investment decision-making and post-acquisition planning.
Client Challenge
The investor required a comprehensive understanding of ESG-related risks and opportunities associated with the target company, including potential regulatory exposure, operational risks, and value-creation levers. ESG considerations were a key input into valuation, transaction structuring, and lender and limited partner expectations.
Without a structured ESG assessment, the client faced the risk of undiscovered liabilities, post-acquisition surprises, and limited visibility into sustainability-linked value drivers.
High-Level Scope of Engagement
Bilancia was engaged to conduct an ESG due diligence assessment to identify material ESG risks, compliance gaps, and improvement opportunities relevant to the target’s operations and sector. The scope was designed to support transaction evaluation and inform post-acquisition integration priorities.
Key Deliverables
- ESG due diligence report covering environmental, social, and governance dimensions
- Identification and prioritisation of material ESG risks and opportunities
- High-level benchmarking against sector expectations
- Action-oriented recommendations to support post-acquisition integration
- Executive summary suitable for investment committee and lender review
Outcomes / Impact
- Enabled the investor to make informed, risk-adjusted investment decisions
- Identified material ESG considerations relevant to valuation and transaction structuring
- Supported post-acquisition planning through prioritised ESG action areas
- Strengthened alignment with lender and limited partner ESG expectations
- Improved visibility into sustainability-linked risks and value-creation opportunities