McGrathNicol’s Courtney Roe: ESG in investors’ sights

With economic conditions becoming more stable and market confidence returning, McGrathNicol Director, Courtney Roe, agrees deal flow should pick up in the next 12 months.

In this excerpt from our 2025 ANZ Women In Dealmaking M&A Outlook Report, which features insights from 12 of Australia’s leading female dealmakers, Courtney shares her perspective on market trends, ESG considerations, and diversity in the industry.

“The projected decline in interest rates will likely make financing more accessible, activity from private equity is expected to stimulate deal activity and a growing interest in cross-border M&A deals, particularly from the US, will add to an uptick in deal flow in 2025,” she says. An increase in private equity activity is expected to contribute to deal flow, with PE firms looking to drive an increase in buy-side activity.

“ESG and sustainability considerations are expected to remain a central theme in dealmaking, driven by the accelerating pace of the energy transition in Australia and globally,” says Courtney. Investors and acquirers are syncing their portfolios’ and subsidiaries’ goals with their own ESG objectives, particularly in light of Australia’s evolving sustainability reporting framework. A mandatory climate related disclosure regime for Australian reporting entities started this year.

“Businesses that demonstrate significant progress towards ESG and sustainability initiatives, and show how these have been embedded into long-term strategy, will remain attractive,” Courtney says.

Tech and digital transformation are hot sectors, particularly companies with AI, cybersecurity or fintech offerings. “Renewable energy, decarbonization technologies and green technologies will be on the radar, as companies continue their energy-transition pathways towards net zero,” she says.

"ESG and sustainability considerations as part of due diligence have been front of mind for bidders and this is expected to continue. “Companies are starting to realize the benefits of identifying the risks and opportunities of sustainability issues, such as climate change, early. They need to develop strategies to address these issues to future proof profitability and remain competitive,” Courtney notes.

Payroll due diligence is also in the spotlight, due to emerging regulation in this area. Payroll due diligence involves the evaluation of labour relations and contracts. It helps to identify of potential risk areas associated with payroll, which can often be complex and costly to remedy.

Reflecting on her career, Courtney says the variety of the work keeps her motivated. “Every deal, client, business, target, acquirer, industry, value driver, process nuance, and personality involved is different. I am constantly learning, which keeps me motivated.”

For a lot of her career she was the only female in the room. “It was so rare for there to be another woman on the deal execution team or on the buy and sell side advisory teams or as part of target and bidder management teams. I have seen that really change, particularly over the last five years.”

Courtney attributes this to many advisory firms and corporates recognizing the value in diverse teams. “The shift from in-person meetings to virtual calls during COVID and hybrid working has afforded a greater level of flexibility for working parents.

“This has meant more women have stayed in M&A, whereas previously the unpredictable hours, high pressure and demanding deadlines often made balancing caring responsibilities and life outside of work unsustainable. The evolving work environment has been positive for women in dealmaking.”