Environmental liability can complicate and even derail acquisitions while unexpected liabilities can significantly affect a company’s bottom line. But old insurance policies may hold hidden assets and could remove your unwanted liability issues.
To get started, first answer the following questions to determine if your portfolio has liability issues.
- Are contamination issues preventing an acquisition or land purchase?
- Have you considered using the old insurance owned by companies that you’ve purchased or are considering?
- Does your portfolio include old manufacturing sites?
- Are any of your companies paying for environmental investigation and cleanup?
- Are environmental liabilities impacting the balance sheet of any of your portfolio companies?
- Is environmental work being delayed or dragged out to preserve the EBITDA of any of your portfolio companies?
For an explanation of commonly used environmental terms in M&A, visit our Common Environmental Terms in Mergers and Acquisitions post.
If your portfolio has deals which involve environmental liabilities, we can help you save them. We’ve found over $3 billion in usable assets for clients since 2008. Through our unique insurance archaeology division, PolicyFind™, we reconstruct historical insurance coverage, locate funding for cleanup costs and legal defense against third-party liabilities. We manage environmental claims, provide remediation services and offer guaranteed cost-cap cleanups to effectuate a transaction.