Due diligence register
Legal Register for due diligence
Due diligence is a lengthy and very important process, particularly in respect of mergers and acquisitions. Unfortunately, although a great deal of attention is paid to financial information, to human rights issues, to the legal status of buildings and to human resources issues, environmental compliance can often be missed, particularly where a business is looking to move into a new industry sector. Environmental specialists are not often part of the due diligence team, meaning that the new owner may find themselves facing hefty penalties for legacy non-compliance or the old owner may find themselves having to return large portions of the settlement they received to reimburse the new owners when problems are discovered.
How can we help?
The legal register we create can identify any potential issues, or provide reassurance that there are none, giving both sides confidence that this aspect of the business is not going to offer any post-acquisition surprises. In a merger/acquisition situation we can, where appropriate, assess the new business as a whole ensuring that, for example, any de minimis thresholds are considered in light of the new enterprise.
Where due diligence is being carried out for investment purposes, we can protect the potential investor from facing potentially embarrassing publicity in the event that a post-investment non-compliance comes to light.
Not all due diligence teams have environmental expertise embedded in them, using 3rdi gives you that additional resource when you need it.