Asset purchase transactions (EHS issues)—reporting due diligence
Asset purchase transactions (EHS issues)—reporting due diligence

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

  • Asset purchase transactions (EHS issues)—reporting due diligence
  • Reviewing technical reports
  • Legal due diligence report

Reviewing technical reports

If a technical environmental report was obtained by the buyer during the due diligence phase (or provided by the seller in the data room), it will need to be interpreted and then practical advice provided to the client regarding potential liability issues and suggested recommendations to mitigate the risks.

Key issues for the lawyers to consider are:

  1. does the report provide clear evidence of (environment, health and safety) EHS non-compliance issues, capex requirements or potential liabilities?

  2. should an independent environmental consultant review and challenge the conclusions of the environmental report?

  3. will a conference call or meeting between the two environmental consultants (with clients and lawyers) help to resolve any issues of concern?