Mazars Enhances Business Valuations with ESG Integration

Mazars Launches Tailored Advisory Service Empowering Businesses to Integrate ESG Factors into Business Valuation Process

Bangkok, 11 April 2024 — In response to the growing recognition of sustainability’s profound impact on business valuation, Mazars is introducing pragmatic advisory service designed to empower businesses of all sizes to take into account the Environmental, Social, and Governance (ESG) principles into their valuation processes.

This comprehensive service, tailored for organizations of all sizes including private startups and SMEs, acknowledges the evolving landscape where sustainability concerns increasingly influence cash flow estimates and overall business value.

ESG factors, ranging from circular economy initiatives to corporate social responsibility practices, have emerged as essential components shaping the financial outlook of organizations across industries. While traditionally associated with large public companies, the influence of ESG considerations extends far beyond, significantly impacting the valuation of private startups and SMEs. 

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Recognizing this paradigm shift, Mazars is committed to guiding businesses through integrating ESG factors into their valuation methodologies, enabling a more accurate assessment of their fair market value.

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“At Mazars, we understand that each business is unique, with its own set of ESG risks and opportunities,” said Mr. Prasenjit Chakraborty, Partner – Financial Advisory at Mazars. 

“Our advisory service emphasizes a meticulous evaluation of the most pertinent ESG factors relevant to each client, ensuring a tailored approach that aligns with their business model and goals.”

Integrating ESG considerations into the valuation process represents a critical step toward achieving a holistic understanding of a business’s true worth. By incorporating these tailored considerations, businesses can gain valuable insights into their ESG exposure and its potential impact on cash flow estimates. Through a nuanced understanding of the sensitivities of Discounted Cash Flow (DCF) models when dealing with ESG data, Mazars aims to equip businesses with the tools and knowledge necessary to navigate the complexities of sustainable valuation.

“We encourage businesses to reach out for further discussion regarding the fair value assessment incorporating ESG factors,” added Ms Surichai Saeaid, Senior Manager of financial advisory at Mazars. “Our team of experts is dedicated to assisting organizations in unlocking the full potential of ESG integration, fostering resilience, and driving sustainable growth.”

Mazars’ advisory service represents a great opportunity for businesses to stay ahead of the curve in today’s rapidly evolving landscape, where sustainability and financial performance are increasingly intertwined. By embracing ESG considerations in their valuation processes, businesses can not only enhance their market competitiveness but also contribute to a more sustainable and resilient future.

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About Mazars:

Mazars is an internationally integrated partnership, specializing in auditing, accountancy, advisory, tax, and legal services. Operating in over 100 countries and territories around the world, we draw on the expertise of more than 50,000 professionals – 33,000+ in Mazars’ integrated partnership and 17,000+ via the Mazars North America Alliance – to assist clients of all sizes at every stage of their development. More information can be found at www.mazars.com

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About Mazars in Thailand: 

Mazars in Thailand is a leading, accounting, audit, tax, legal, and advisory practice comprised of over 400 professionals. The practice has Thai, British, Dutch, Indian, German, Japanese, Australian, Vietnamese, and Korean nationals among its senior advisers, which ensures that the company is well placed to function as a bridge between businesses operating in Thailand and related companies overseas. 

For more information, visit www.mazars.co.th.