Due Diligence Support
Real estate and business transactions require careful analysis to identify and account for potential environmental liabilities. Purchasing or leasing property and business assets includes the risk of acquiring liabilities for environmental conditions and impacts attributed to previous owners and past operations. These liabilities can apply to the purchaser of the property and the lending institution that financed the transaction. Likewise, selling property (and assets) having potential environmental concerns could result in long-term and costly financial obligations associated with any retained liabilities for managing the cleanup and maintenance of the property. Unidentified or unknown environmental conditions on a property could far outweigh the costs to perform a Phase I Environmental Site Assessment (ESA).
AMO understands the importance of an effective due diligence program. Our objective is to help companies minimize certain property transaction risks by identifying and managing potential environmental risks. We compile, review and assess available information and data in completing each ESA; and, as dictated by project needs, provide data rooms and information management systems in support of the effort.
AMO provides due diligence support ranging from single property ESAs to managing/coordinating multi-site due diligence programs. Our staff has completed projects ranging in size from vacant farmland and small commercial properties to large industrial manufacturing facilities. In addition, our staff includes former corporate Environmental Managers with substantial experience managing corporate financial reserves and Asset Retirement Obligations following the principles and standards of Generally Accepted Accounting Procedures (GAAP) and the Financial Accounting and Standards Board (FASB).
AMO generally follows ASTM standards (including E1527-05 and E2247-02) in performing its due diligence evaluations. Following these standards, we identify Recognized Environmental Conditions (RECs) and comply with the recently promulgated EPA All Appropriate Inquiries Rule (40 CFR Part 312), which provide prospective purchasers with certain liability protections under CERCLA. If appropriate, adjustments to the ASTM standard practice may be made as appropriate to meet the specific requirements of an individual due diligence program (e.g., ASTM E1528, standards for transaction screening). Modified or abbreviated assessments and reporting may also be performed to meet project-specific needs.