Sustainable construction
Review of M&A activity in 2023
Content of the study
With around 42% of total CO2 emissions, the construction sector is one of the largest emitters and must be sustainably reorganised in order to achieve the climate targets set by the EU and Germany. Regulatory pressure on the construction sector has increased enormously in recent years due to requirements such as the Energy Performance of Buildings Directive (EPBD) and will continue to rise in the future. As a result, companies are focussing on skills such as resource management, energy efficiency and system networking.
In this study, we analysed the extent to which these challenges are being addressed by M&A activities in the construction sector. To this end, more than 200 transactions in the field of sustainable construction in 2023 were examined and qualitatively analysed with regard to the motivation behind the transactions. In addition, the development of a benchmark portfolio of internationally listed companies with a sustainability and ESG focus was analysed using EBITDA multiples.
The results of the study show that M&A activity is increasing in order to realise economies of scale and thus efficiency gains through group formation and market consolidation on the one hand and to integrate sustainable technologies and expertise through vertical acquisitions on the other. In addition, ESG expertise is becoming a key decision-making criterion for investors and is driving valuations in the sector. Companies with comprehensive ESG expertise are better positioned to create long-term value and adapt to the challenges of a changing market.
