Our complete environmental due diligence service will identify the current conditions of a business or site and determine any liabilities or non-compliance that you may inherit.
In business, some liabilities may be obvious, while others may be hidden. This is why due diligence is so important if you are considering a business or land purchase. Our complete environmental due diligence service will identify the current conditions of a business or site and determine any liabilities or non-compliance that you may inherit through an acquisition.
Phase 1 Environmental Due Diligence Assessments
What is a Phase 1 Environmental Due Diligence Assessment?
Our experienced consultants provide a comprehensive environmental audit service for business as part of legal and commercial due diligence. It identifies actual, potential and latent material issues with the target company, so you identify your environmental risks prior to acquisition or purchase. This assessment allows you to make an informed business decision around your acquisition or purchase by:
- Determining any existing issues so they can be managed appropriately
- Establishing any barriers to growth
What are the benefits of a Phase 1 Environmental Due Diligence Assessment?
- Ensures your environmental legal compliance
- Avoid any identified barriers to growth with access to environmental compliance expertise
- Save costs – avoid environmental clean-up liabilities that may be inherited
What to expect from our Phase 1 Environmental Due Diligence service?
This service provides insurers, solicitors, intermediaries and investment managers with an in-depth, independent review to determine:
- Environmental legal compliance
- Barriers to growth
- Existing environmental clean-up liabilities that may be inherited
This will help to determine the appropriate insurance cover for the business being purchased and identify any mitigation or remedial measures and costs that will be required to continue operation.
An audit will usually begin with our experienced consultant meeting with key personnel within the organisation, progressing to a site tour and inspections. A review of relevant vendor-supplied information via the electronic data room will be undertaken, and the most common obvious concerns will be looked at. This includes land, air and water emissions, environmental permitting concerns, waste management, oil and chemical storage and statutory nuisances in addition to any site or organisation specific concerns.
The outputs of the assessment will be a comprehensive report and will focus on three broad areas:
- Legal compliance
- Barriers to growth
- Determination of clean-up liabilities and costs.
The high-level report will identify any material risks to make formed business decisions on the acquisition / purchase of the target company and will identify any issues which need to be dealt with immediately.
Part of the Environmental Due Diligence Audit will include a Desktop Review of the Data Room. In this section of the audit, our experienced expert will analyse:
- General information on the business activities, products or services – to facilitate an improved understanding of potential environmental effects
- Disclosed information on any environmental issues
- Financial provisions – to confirm previous budgetary allowances for environmental capital expenditure, and future projections for any identified environmental issues
- Relevant contractual arrangements, particularly lease agreements (depending on the nature of the business) in conjunction with legal advisors – to confirm potential exposure on environmental liabilities
- Proposed Share Purchase Agreement (SPA) provisions, including environmental indemnities, warranties and disclosures, where necessary
- A full review of this information will ensure that you are fully informed regarding any disclosed or potential environmental issues and the possible legal and financial implications
