Importance of Environmental DD?

Viewing 11 posts - 1 through 11 (of 11 total)
  • Author
    Posts
  • #36440
    R Ganes Ramalingam
    Participant

    In your past M&A experiences, have you conducted an environmental DD? If yes, was this done internally or engaged external consultants?

    #51375
    Mohanad Alzughaibi
    Participant

    Unfortunately I have not but it would be interesting

    #51621
    Sultan Fatani
    Participant

    I was involved in a corporate transaction in which the environmental DD was part of the Technical DD. The DD was based on a Scope of Work that was developed by the Company’s Technical team , based on the international standards, and was executed with a third party international consultant to ensure that any environmental liabilities are being considered and addressed properly, either in the valuation or by having environmental Reps. & Warranties in the SPA.

    #51906
    Yiwei Lee
    Participant

    In my past experience, I was working on a solar panel construction project – environmental DD was key, as we needed to analyze how much carbon footprint we can actually help to save and if this project would be cost effective

    #51997
    Ali Alsudairi
    Participant

    Interesting domain especially since this year’s focus is ESG. However to your Q unfortunately I have not done such assessment.

    #52002
    Christopher Twible
    Participant

    I haven’t found it formally done in DD however it is covered as part of a normal ESG questionnaire from the buyer and in my recent sell-side deal the buyer asked for our most recent Board ESG Report.

    #57511
    Omar Solh
    Participant

    Always rely on external technical advisors to perform an Environmental DD. They will be able to ask all the right questions, and remain objective as they benchmark against industry or international practice.

    #57555
    Sean Mullin
    Participant

    Agree with above- our teams always relied on external advisors due to their knowledge/comparables and continued focus on ESG.

    #57600
    Ruth Ng
    Participant

    If the target is in the enviromentally sensitive industry, i.e. mining, it’s very important to have the external consultants/experts – who stay on top of the market – for the enviromental DD.

    #58449
    Craig Finley
    Participant

    Having the right team engaged early on is critical. Knowing the industry, regulatory requirements, and unique local needs can often have a major impact on valuation. Not doing this right early or trying to save pennies now likely results in spending dollars later when critical items are missed.

    #58736
    Woon Pheng Ong
    Participant

    I believe environmental DD is relevant for certain industries e.g. oil & gas, mining, agriculture, etc. Environmental DD involving M&A of other industries like technology, professional services, etc. are often not necessary and relevant.

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