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Environmental due diligence prior to acquisition

It was important for the buyer of a business not to interrupt operations because of a business transfer. Therefore, a full environmental due diligence was made.

When acquiring a business, it is of course vital to be sure that you are actually buying what you believe you are buying – and what the price therefore has been set according to.

This also applies to environmental issues, so when a client wanted to acquire a manufacturing company, associate partner at Holst, Stine Kalsmose Jakobsen, assisted with a full environmental due diligence.

It was in particular relevant as it was a business located on different sites, and several environmental requirements were to be observed. Hence, there was a need for clarifying whether operations could be continued with a new owner, as even few days with production shutdown can be costly.

The environmental due diligence comprised both a risk analysis of the production, an analysis of the present permit, and an identification of the options of keeping and re-issuing all necessary permits, also following a business transfer.

Practice areas applied