Merger & Acquisitions (M&A) projects involve significant capital investment even before the deal is closed. This is why thorough and efficient due diligence is necessary for all M&As. Wenck’s diverse mix of expertise makes our teams uniquely qualified to not only quickly identify risk, but also quantify costs early in the process. Environmental Due Diligence (EDD) is the process of identifying, evaluating and quantifying potential environmental liabilities on a real estate property and (in certain instances) evaluating the environmental liabilities for owning and operating the evaluated business. Calculating real estate and business risk accurately helps both buyers and sellers reach more equitable deals during the negotiation process.
There is no standardized process for conducting Environmental Due Diligence during mergers and acquisitions because each merger and acquisition is unique. The particular liabilities investigated during M&A EDD depend on your particular industry, permitting and compliance requirements, processes, and the nature of the merger itself. Comprehensive M&A EDD can’t only evaluate the site. It must also evaluate the potential environmental impact of the transition of the new operations onto the site.
Conducting this kind of custom, specialized EED requires the work of a similarly-specialized environmental engineering team. Wenck is that team.
Wenck’s Environmental Due Diligence teams have the diversity of experience and expertise to assist with M&As in all markets of investment or divestiture. Wenck’s expertise with not only EDD, but also environmental permitting and compliance, health and safety, and engineering services enables our team to provide turn-key evaluation.
Wenck doesn’t just have the expertise and experience necessary to help you; we make sure we put it to work in the most effective manner for your project. To do that, Wenck assembles and assigns you a custom team from among our experts only after we’ve evaluated what your project calls for. By assembling the right team for you, we can ensure that your partners always have the expertise and resources to make your assessments effectively along with the flexibility and responsiveness to make any necessary adjustments to your EDD plan without delay. Most importantly, our experts have the experience to communicate our findings to you as usefully as possible. We don’t just tell you what we find; we use it to help inform your next steps clearly.
When Wenck conducts your M&A EDD, you get an expert team that understands you, delivers what you need, and helps you use it to benefit your business. Every time.
Who does Wenck provide Environmental Due Diligence Services to?
Wenck works as a close advocate of buyers, sellers, and legal representation on each side of merger and acquisition deals in both single and multi-site commercial property projects across the United States. Whatever phase of the deal you’re in and whatever type of survey you need, we have everything we need to help you effectively. Wenck has extensive experience providing our environmental due diligence expertise to:
- Private Equity Firms
- Financial Institutions
- Real Estate Investment Trusts
- Commercial, Industrial & Manufacturing Companies
Which Environmental Due Diligence Services can Wenck provide for Merger & Acquisition projects?
Wenck retains multidisciplinary environmental engineering, process development, and industrial safety professionals in order to effectively respond to whatever our client’s needs. Wenck discovers what your particular merger and acquisition environmental due diligence project requires during an initial initial interview and survey of your properties. Then, we assign the team and resources required to complete each of the tasks we deem necessary.
Although no two M&A EDD projects are the same, many require the same or similar functions. Some of the most common assessments Wenck experts conduct in the course of M&A EDD projects include:
- Phase I Environmental Site Assessment: Wenck qualifies as an Environmental Professional organization per EPA definitions. We are approved to perform Phase I Environmental Site Assessment in accordance with ASTM E1527 -2005 Standard Practice for Environmental Assessments and the Small Business Liability and Brownfield Revitalization Act of 2002 (or Brownfield Amendments) for conducting All Appropriate Inquiries (AAI).
During Phase I ESAs, Wenck will interview current and previous property owners, review compliance information and government records, and physically inspect the property to find, identify, and quantify all current and Historical Recognized Environmental Conditions. Each of these environmental risks will be recorded in an impact report and made available to the client. Depending on findings, a Phase II Environmental Site Assessment may also be warranted.
- Phase II Environmental Site Assessment: Phase II environmental site assessments are not always required and are generally conducted as a follow-up to discoveries made during a Phase I ESA. Phase II ESAs include the collection of soil and/or groundwater samples. This information is used to determine if environmental contamination of risk areas is above a state-mandated clean-up criteria. Wenck’s experts are qualified to perform Phase II ESas per EPA and ASTM mandated standards.
- Property Condition Assessment: Wenck conducts Property Condition Assessments in accordance with ASTM E2018 standards. We often conduct our PCAs during or alongside Phase I ESA. During a property condition assessment (PCA), Wenck evaluates the safety and structural integrity of the architectural and utility elements of a facility. We check the foundation, framing, roofing electrical systems, plumbing, and more. We assemble these findings into a comprehensive Property Condition Report (PCR), which will be made available to you digitally along with all other documentation.
- Environmental Compliance Assessment: During an Environmental Compliance Assessment, Wenck ensures that your facility, process, and equipment all meet the environmental compliance standards they are subject to per EPA and OSHA guidelines. These specific guidelines and the criteria for their evaluation are dependent on your specific equipment. As part of the assessment, Wenck will inform you of which standards we are checking against and whether or not you meet them.
- Asbestos Survey: Wenck’s team can check for asbestos in your facility either as part of a larger PCA or as its own stand-alone service. Wenck will report on where asbestos is found, the danger it represents, and what removing it safely and effectively would cost.
- Regulated Materials Survey: A regulated materials survey identifies all potentially hazardous materials present in a building and quantifies the harm they could inflict on workers, product, or infrastructure if they aren’t removed. Wenck generally conducts a regulated materials survey while surveying for asbestos.
- Health & Safety Assessments: Health and safety assessments are holistic reviews of workplaces, processes, equipment, and building systems meant to identify any potential health risks or other working hazards. Wenck’s HSA professionals will conduct a comprehensive review of your workplace protocols, survey your site, review your equipment, and compile their report and recommendations digitally alongside all other documentation.
What are my next steps?
If you need environmental due diligence for your merger and acquisition, get in touch with Wenck online or call us at 763-292-3651 to talk to our M&A EDD specialists, Otte, Panian, and Benker.
During an initial phone interview, we will ask you questions about scope, schedule, budget, and the paperwork you have available to review. All you need is an idea of what you need and where you want to go, along with whether or not you need a non-disclosure agreement. Wenck can handle the rest. We look forward to helping you manage your merger and acquisition successfully!
WE WELCOME THE OPPORTUNITY TO LEARN MORE ABOUT YOUR MERGER & ACQUISITION'S ENVIRONMENTAL DUE DILIGENCE NEEDS.