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