HAIL Environmental carries out Environmental Due Diligence (EDD) for clients who are looking to purchase property that may be impacted by former land use activities or when they are looking to acquire a business whose operations depend on compliance with local or regional planning regulations.
Unlike many countries New Zealand operates under a ‘buyer beware’ principal, not ‘polluter pays’, so purchasers of property can be caught out and held responsible for historical land use impacts. HAIL Environmental quantifies these risks for clients prior to finalising a sale and purchase agreement. Investigations often start with desk top research and site walkovers and may lead to more detailed investigations if warranted. Understanding the true cost of site liability and the potential impact on development plans is not only smart planning it may be a condition of finance agreements. Carrying out EDD prior to a property purchase allows the buyer to renegotiate the purchase price based on liability or place conditions on the agreement that share or transfer the liability. These aspects are negotiated with the assistance of property lawyers who often specialise in mergers and acquisitions.
If you intend to acquire a business for the purpose of ongoing operation it is prudent to determine if the current or proposed operation is in compliance with local or regional planning requirements. HAIL Environmental reviews operational requirements against relevant regulations to identify non-compliance items and estimate the cost of the remedy. Sometimes a business may have a history of non-compliance that can lead to disruption of the business operation or significant expense that has not been considered in the business plan.
EDD investigation often require a high degree of client confidentiality, fast turnaround, and ongoing updates between the clients appointed legal and finance team. HAIL Environmental will work with the client or their appointed representatives to develop an approach to suit their needs. Often reports will comprise a key issues register that provides the client with a high level overview and the cost associated with the remedial actions.