Randi Mason Quoted in Middle Market Dealmaker on Value of ESG in Middle Market Transactions

Randi Mason was quoted in a Middle Market DealMaker cover story entitled “How ESG is Changing the M&A Landscape.” The article, published in the Fall 2022 issue, takes a comprehensive look at how ESG has become a barometer for the health of any business valued by investors, including those seeking funding in the private equity world.

Randi said that while ESG concerns are a factor in the middle market, they do not tend to hold up middle-market deals. She stated, “In the lower- and middle-middle market, the aim is to invest in businesses with high growth potential, so anything that is a potential drag on valuation and growth is looked at closely. That includes ESG-related liability and reputational issues.” She added, “The lens through which investors, other than impact investors, tend to look at things is, ‘Will this company help or harm valuation or growth?’ Not, ‘How does this company rate on an ESG scale.’”

The article concluded with a comment from Randi on how today’s consumers are taking businesses to task on ESG factors. She stated, “People around the world are growing increasingly concerned about things like climate change and racial justice. I think there could continue to be increasing pressure on companies to do better in these areas, in spite of macroeconomic conditions.”

Read the full article (pp. 42-45) here or the PDF below.