A Chinese foreign investor was negotiating a deal to acquire a Europe-based manufacturer of tableware. Sustainability experts at KPMG in Germany, working as part of an integrated KPMG financial, legal and ESG (environmental, social and governance) due diligence team, uncovered many ESG risks including environmental liabilities, poor working conditions, potential for labor disputes and unsound Board processes.
As a result the client reduced the offered deal price by US$10 million. Integrating the financial, legal and ESG due diligence processes increased the efficiency of the assessment and saved the client time and money. KPMG delivered its report within a tight time frame of only two weeks.
Tomas Otterström, KPMG in Finland and KPMG in Sweden.