The true cost, value or impact of environmental, health, safety (EHS) and sustainability management rarely appear on the financial statements of a business.
However, acquisitions and mergers can saddle companies with unexpected EHS and sustainability liabilities and miss significant operational improvement opportunities. Unplanned cleanup costs, regulatory penalties, or capital improvements can dramatically undermine the value of a business transaction.
Investors, private equity firms, and corporations are increasingly seeking proof of robust EHSS management as part of their due diligence around mergers and acquisitions. Collating, presenting, and understanding this evidence, however, can be complex and time-consuming.
Keeping transactions on track
ERM has an unrivalled track record in supporting time-sensitive, multi-location due diligence efforts. We identify and quantify and prioritize current, contingent, and future EHS and sustainability exposures.
Our experience allows us to anticipate issues, enabling them to be proactively addressed before transaction timelines are impacted. ERM also identifies strengths and opportunities that can enhance the sale process and value of a divestment. Our due diligence offerings include:
- An extensive global network of local experts, vital for transactions involving multinational sites;
- Deep industry experience as well as EHS and sustainability expertise;
- A holistic approach that looks beyond EHS and sustainability liabilities and risks to identify opportunities; and
- Experienced deal teams to help keep timelines and transactions on track.
With greater transparency, investors, lenders, and buyers can have confidence in the valuation model and their level of exposure. Sellers, meanwhile, can benefit from a more competitive and accelerated sale process that maximizes their return and protects their interests by building EHS and sustainability into the terms of the transaction.