Three Strategic Options for Managing Acquired Environmental Liabilities

Evaluating Through a Finance Lens
Aug 22, 2016 10:30 AM ET

Three Strategic Options for Managing Acquired Environmental Liabilities

As companies strive to remain competitive and profitable in today’s uncertain economy, asset transactions continue to play a leading role in their efforts to transform, adapt and re-invent themselves. A well-thought out and well-executed acquisition can bask even the most gloomy of balance sheets in sunshine by bringing rapid revenue growth, added geographic coverage, a complimentary value offering to customers or even entry to a more favorable space in a competitive market.  

Unfortunately, many of these acquisitions also harbor a “shady” spot or two that comes in the shape of legacy environmental liabilities. Acquiring liabilities is not entirely negative – typically this is an unavoidable part of getting the deal done, and many times it devalues the total asset asking price favorably for a buyer. However, what may be accepted as a little shade in an otherwise sunny deal can quickly become an unresolvable damp basement of doom, gloom and horror for a company through the mismanagement of the acquired environmental liabilities.

It is important to define and stick with a long-term strategy for effective environmental liability management and to understand the implications and true costs of the strategy selected. With that in mind, we've outlined the three strategic options usually considered when managing a portfolio of environmental liabilities.

Read the full story on the Antea Group blog.
 

About Antea Group

Antea Group is an international engineering and environmental consulting firm specializing in full-service solutions in the fields of environment, infrastructure, urban planning and water. By combining strategic thinking and multidisciplinary perspectives with technical expertise and pragmatic action, we do more than effectively solve client challenges; we deliver sustainable results for a better future. With more than 3,000 employees in over 100 offices around the world, we serve clients ranging from global energy companies and manufacturers to national governments and local municipalities. Learn more at http://us.anteagroup.com.