In today’s dynamically changing business world, Due Diligence is becoming an inseparable element of transaction processes, especially in the case of acquisitions and mergers of companies.
Due Diligence audits guarantee security and financial stability for potential investors. This applies to the environmental aspect in particular, which – in the face of growing conservancy awareness and tightening laws – is becoming increasingly important.
Environmental audits being a part of Due Diligence are aimed at identifying any potential environmental risks that may affect the value of company and generate additional costs in the future. Proper analysis of the environment at the stage of purchasing a company allows for presentation of an accurate picture of the audited entity, facilitating the valuation and assessment of the degree of risk associated with potential environmental liabilities.
Every company, regardless of its industry and scale of operations, may be subject to conservancy regulations that significantly affect its value and operational efficiency. In particular, industrial enterprises, including those with a long history of operations, may harbor potential environmental risks. Delays in environmental reporting, unidentified pollutants, or land use history are just a few issues that may involve additional costs for the new owner.
When conducting environmental Due Diligence audits at Ecothesis, we use international ASTM standards, expanding them to include aspects specific to the Polish legal system and the realities of running a business. Our audits cover a wide range of environmental aspects, including:
Audyty due diligence są zazwyczaj podzielone na trzy fazy:
Documentation
analysis
Analysis of documentation, permits, reports, and environmental review.
The goal is to identify potential risks related to site contamination, assess current operations for compliance with regulations, and provide a preliminary estimate of the costs of environmental remediation.
Evidence
collection
A deeper analysis of the issues identified during the first phase. Tests, such as soil or groundwater sampling, are carried out in order to identify potential contamination and its sources with greater accuracy.
Corrective
actions
Estimating the costs of corrective actions and investments necessary to achieve compliance with environmental requirements. This phase is carried out depending on the results of the second phase.
Environmental auditing is linked with a number of challenges, including analyses of the history of facilities in question, construction documentation, as well as identifying potential “pitfalls”, namely unidentified contamination, the presence of asbestos, or non-compliance related to installations and infrastructure.
The success of an environmental audit in Due Diligence depends on the competence and experience of the audit team. At Ecothesis, we make sure that our experts have not only theoretical knowledge, but also practical experience in identifying and analyzing environmental risks.
Due Diligence audits are an invaluable tool in the process of assessing risks associated with a company acquisition, allowing the disclosure of potential environmental and financial problems. A professionally conducted environmental audit provides the necessary information for valuing the company in question and making informed investment decisions. Ecothesis team guarantees comprehensive support in environmental auditing and provide the Clients with access to the knowledge and experience indispensable for an effective assessment of environmental risk.
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