New starters asset purchase transactions collection (EHS issues)—post completion environmental tasks
Produced in partnership with Irwin Mitchell
Practice notesNew starters asset purchase transactions collection (EHS issues)—post completion environmental tasks
Produced in partnership with Irwin Mitchell
Practice notesFor 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:
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carrying out a baseline phase 2 environmental audit
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undertaking a phase 1 compliance audit to rectify items raised during due diligence
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preparing an asbestos management plan
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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:
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agreeing the scope of work for any environmental audits
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having access rights to complete certain works, and/or
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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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