Financier Worldwide Ltd
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Increased frequency and severity of claims related to the condition of assets in M&A transactions.
- Accounting risks, including manipulation and lack of audits.
- Cybersecurity risks and inadequate computer infrastructure or software licenses.
- Technological disruptions, environmental, social, and governance (ESG) impacts, and regulatory changes.
- Pressure to quickly establish a price in M&A deals, leading to overemphasis on financial aspects and neglect of other critical areas.
Mitigation Strategies
- Enhanced due diligence processes focusing on legal, financial, tax, environmental, condition of assets, and cyber exposures.
- Thorough review of financials and valuations.
- Increased vigilance toward emerging risks such as technological disruptions, ESG impacts, and regulatory changes.
- Robust integration planning and execution to address cultural differences and align strategic objectives.
- Use of representations and warranties (R&W) insurance, tax liability insurance, and contingent risk insurance to transfer risk and streamline transactions.