What does the Climate Change Plan mean for the Australian M&A environment?
There are likely to be important impacts on the Australian M&A environment. For many companies it may signal opportunity, providing strong imperative for cost reductions through industry consolidation. In some cases, asset owners may be motivated to sell "covered assets" to better manage their future carbon liability and for others, it may result in increased caution as companies wait to the see the impacts on business valuations, access to funding and transaction processes.In our Point of view paper, we discuss the likely impacts and considerations for the deal market, including:
- Impact on M&A Activity
- Direct and indirect impacts of a carbon price on business valuations
- Accessing capital
- Investment in the renewable energy sector
- Complexity for due diligence processes
