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A Compelling Story in ESG is Paramount in Value Creation

Welcome to the 12th edition of Creating Value, our biggest edition so far of IMAP’s flagship mid-market M&A publication, Creating Value. During what has been a record-breaking year for M&A transactions, our partners around the world have found the time to share insights and opinions with you on trending topics and issues timely and relevant in today’s markets.

In our last edition, we were expecting to gear up for a new wave of M&A activity. At the time it might have sounded like a cliché, but even we couldn’t foresee that we would end the year with a record 295 M&A transactions valued at over $27 billion. In this issue we examine the sectors that outperformed and try to understand what was driving such a ferocious level of activity. We take a deep dive into one of those sectors – the Consumer Products sector, which has become a favorite spot for strategic buyers and saw historic levels of activity in 2021.

Although COVID-19 didn’t put the brakes on our ability to close deals, lockdowns and travel restrictions did force us to find alternative ways to connect with our global teams. We held virtual conferences, sector, and panel sessions, and spent hours on Teams and Zoom, with the only change of scenery being our backgrounds! Therefore, I cannot overstate how important it was for us, when in November we were able to hold our first in-person conference in two years. Nothing can replace the relationship and trust building that takes place in person, and the 70 or so colleagues that made it to Lisbon made the most of it!

ESG investing is no longer just a “nice to have” – it’s a major factor influencing the mid-cap market.

The conference gave us the opportunity to launch IMAP’s Environmental, Social, and Governance (ESG) Initiative, which is the theme of our Special Focus section. It’s clear that ESG investing is a wave that is already a major factor with debt providers and private equity funds. It’s no longer a “nice to have” and ESG risk is now a prominent transaction factor influencing the mid-cap market. And so, we at IMAP intend to be in the vanguard of understanding and developing ESG deal capabilities, so that we can guide our clients through this new regulatory and financial maze, and more importantly, capitalize on one of the biggest investment opportunities of the next several decades.

We present a summary of what our experts have to say on the subject, and we are proud to have had former Portuguese Prime Minister and President of the European Commission (EC), José Manuel Durão Barroso join our conference and kick-off our ESG program via live stream from Miami.

Of course, as you would expect with experts covering 15 sectors and a full range of advisory services, this issue provides insights on a broad range of diverse topics, including consolidation opportunities in the machine tool market, the world of strategic financial management, valuation arbitrage and the opportunities that presents for international investors and practical advice for start-ups looking to secure foreign financing.

In our case studies section, we share details of the second largest Fintech deal in Nigeria, a recent cross-border transaction in the Energy sector in LATAM, and a key transaction in the Pet Care sector in Germany, all of which were successfully closed by our global IMAP partners.

Will the party continue into 2022? It’s hard to say – with a predicted four rate hikes on the US horizon to curb the highest inflation numbers in years, anything can happen. But, no matter what, we will continue to serve our clients with the same dedication, in good times or bad, as we have for the past 49 years.

If all goes to plan, we will be hosting our Spring 2022 conference in Paris, and by the time we come back to you with our next edition later this summer, we will have plenty more to share with you. Until then, stay safe – I wish you and your loved ones all the best for the coming year.

“No matter what, we will continue to serve our clients with the same dedication, in good times or bad, as we have for the past 49 years.”

Jurgis V. Oniunas, IMAP Chairman

<< click here to read and download Creating Value – 12th edition >>