In a sellers market, acquirers are under ever increasing pressure to undertake due diligence concisely, effectively and with limited exposure to management.
While the risk requirement for private equity investment in emerging markets is by definition higher than in developed markets, thorough environmental due diligence still needs to be undertaken to manage environmental risk appropriately as targets have historically been operating under less stringent regulations and industry standards.
Rigorous environmental assessment of risks relating for example to contaminated land, operational compliance and hazardous materials is required to help limit risk of exposure.
A robust due diligence process and an appropriate scope is required whether you are a vendor who wants to be forewarned of any complications in preparation for a buyer’s enquiries, or whether you are looking to acquire, and therefore need to appreciate any factors affecting the value of the target.