New starters asset purchase transactions collection (EHS issues)—post completion environmental tasks

Produced in partnership with Irwin Mitchell
Practice notes

New starters asset purchase transactions collection (EHS issues)—post completion environmental tasks

Produced in partnership with Irwin Mitchell

Practice notes
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For more information, see: Post-Completion environmental issues (Asset purchase)—checklist.

Deal with any EHS issues highlighted in the legal due diligence report

Legal due diligence reports and asset purchase agreements (APAs) will sometimes set out specific issues that need to be dealt with post completion.

Actions can include the following:

  1. carrying out a baseline phase 2 environmental audit

  2. undertaking a phase 1 compliance audit to rectify items raised during due diligence

  3. preparing an asbestos management plan

  4. addressing recommendations in a fire risk assessment or legionella report

The buyer will undertake these tasks having control of the property.

The APA can include mechanisms for the seller’s lawyers to have input in the post-completion work, such as:

  1. agreeing the scope of work for any environmental audits

  2. having access rights to complete certain works, and/or

  3. for the seller to pay the costs incurred by the buyer

See Precedent: Environmental rectification work clause.

Address any EHS issues that have been identified in an environmental audit

The key technical

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Asset definition
What does Asset mean?

(1) Any item of value; (2) The holdings of a fund, which may include stocks, shares, fixed-interest securities or cash; (3) The main types of investment available: bonds, equities, real estate, commodities etc.

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