Business combinations of profit-driven companies with purpose-driven companies
Summary provided by officers
IBA Corporate and M&A Law Committee
A session at the IBA Annual Conference Toronto 2025, on 5 November 2025
Corporate Law Section (Lead)
Business Human Rights Committee
Closely Held Companies Committee
Corporate and M&A Law Committee
Session Co-Chairs
Giuseppe Coco, Ughi e Nunziante, Milan
Steven A Cohen, Wachtell, Lipton, Rosen & Katz, New York
Panelists
Narinder Dhami, The Sonor Foundation, Toronto
Louise Kennedy, BDC, Montréal
María Fernanda Mierez, Beccar Varela, Buenos Aires
Nirav Patel, Bates Wells, London
Session summary
The 2025 Toronto session ‘Business combinations of profit-Driven companies with purpose-driven companies’ held on Wednesday morning explored how mission-focused and profit-oriented organisations can align their values and strategies during mergers, investments and in regard to governance. Moderated by Steve Cohen and Giuseppe Coco, the panel featured experts from Canada, the United Kingdom, Argentina and beyond, sharing case studies and discussing frameworks such as B Corp certification to illustrate successful purpose–profit integration. The discussion traced how purpose is embedded into business models through governance tools, investment strategies and certifications that ensure accountability and sustainability. Speakers highlighted the role of institutional investors, like BDC, in reinforcing long-term impacts through climate, inclusion and mental health initiatives. The session concluded by addressing the challenges to business combinations such as mission drift, governance failure and maintaining such alignments after acquisitions.
Key takeaways
- Alignment of purpose and profit requires intentional governance structures, certifications and sustained cultural commitment;
- B Corp certification offers a global framework that embeds social and environmental goals into corporate strategy, while maintaining financial performance;
- institutional investors like BDC demonstrate how purpose-driven investing can yield long-term value, mitigate risks and foster sustainable innovation;
- post-acquisition governance is crucial. Mission drift often occurs when the purpose isn’t structurally protected in deal terms or board mechanisms; and
- purpose as a strategic asset enhances brand equity, attracts talent, builds investor confidence and provides resilience in an evolving economic and environmental landscape.