In early 2022, Eversheds Sutherland commissioned a global study of 1,200 business leaders to assess attitudes and approaches to M&A. Looking back on the events that have shaped the past year, it is clear that the uncertainty which pervaded the market resulted in what many would describe as a cautious end to the year. Notwithstanding this, there remains a sense of optimism for 2023, with many predicting that M&A activity will begin to increase as we move through the first half of the year. Whilst there are many factors driving this view, a rise in ESG regulation and increasing demand for ethical investments from stakeholders are two primary factors that cannot be ignored by business leaders as they innovate and adapt their existing practices to build more equitable and sustainable business models.

These views are supported by the results of our global study and demonstrate that ESG is high on the list of priorities of business leaders across all sectors, with 67% of leaders stating that ESG is important to their business strategy. In addition, 71% of business leaders operating in the TMT sector reported an increase in the value attributed to target companies with a particular focus on DEI strategies and new technologies achieving net zero.

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