Asset purchase transactions (EHS issues)—appointing environmental consultants
Asset purchase transactions (EHS issues)—appointing environmental consultants

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • Asset purchase transactions (EHS issues)—appointing environmental consultants
  • Technical due diligence
  • Types of environmental audits
  • Environmental desktop searches
  • Phase 1 environmental audits
  • Intrusive phase 2 investigations
  • Appointing environmental consultants

This Practice Note is part of the Environmental transactions asset purchase toolkit. It has been produced in partnership with ELM Law.

Technical due diligence

If there are known or suspected non-compliance or land contamination concerns, the buyer or ideally its lawyers might instruct an environmental consultancy firm to undertake a phase 1 EHS compliance audit or intrusive phase 2 testing to assess the liability and financial risks.

Types of environmental audits

The table below summarises the different types of environmental audits:

Type of report What is covered Typical price (exc VAT) Timescale
Desktop search Historic uses

Landfills

Environmental permits

Pollution incidents

Ground stability

Flooding
Contaminated land risk screening report £150 

Combined contaminated land and flooding search £245–£295
1–3 days
Basic phase 1 audit Desktop search

Site walk over

Management interview

Regulator replies
£900–£1,800 5–10 days
Detailed phase 1 environment, health and safety (EHS) audit As phase 1 plus:

Review of reports

Review of operational controls and systems

Key health and safety compliance issues

Assessment of capex investment