Environmental Due Diligence in M&A Transactions


This practice note discusses environmental due diligence in corporate merger and acquisition transactions. This diligence naturally involves the assessment of known, potential, and contingent environmental liabilities and obligations associated with the assets and operations of the target company and its affiliates. The nature and extent of environmental due diligence is colored by the nature of the transaction and the nature of the laws and regulations to which the acquisition target is subject. Environmental due diligence can include an examination of the target company's compliance with environmental requirements, the potential for liability at sites currently or formerly used by the business, or sites to which the business arranged for the disposal of hazardous materials.