Neglecting EHS compliance in mergers and acquisitions can lead to significant consequences, including:

• Regulatory fines and penalties for non-compliance
• Legal liabilities and potential lawsuits related to EHS incidents
• Reputational damage and negative publicity
• Operational disruptions and increased costs for remediation
• Difficulty obtaining necessary permits and approvals
• Strained relationships with regulators, employees, and the public Thorough EHS compliance auditing helps mitigate these risks and ensures a smoother transaction and post-acquisition integration process.

Lucion’s support extends beyond the initial EHS compliance audit. We assist clients in developing robust post-acquisition integration plans to address identified EHS compliance gaps and risks. Our team can help prioritise corrective actions, develop remediation strategies, and align EHS management systems between the acquiring and target companies. We facilitate a smooth integration process, ensuring ongoing compliance and minimising disruptions.

Lucion’s global EHS compliance auditing services cover a wide range of geographies and jurisdictions. Our team of experts has extensive knowledge of local EHS regulations and can conduct audits across multiple countries and regions. We ensure a consistent and comprehensive approach while accounting for local regulatory nuances, enabling seamless global compliance assessments.

EHS compliance auditing provides valuable insights into the potential liabilities and costs associated with the target company’s EHS compliance status. Armed with this information, buyers can negotiate favourable deal terms, such as price adjustments, indemnifications, or the inclusion of specific remediation measures in the purchase agreement. Auditing helps allocate EHS risks and responsibilities between parties.

An EHS compliance audit typically covers a wide range of areas, including environmental permits and regulations, health and safety policies and procedures, hazardous materials management, waste management, air and water emissions, employee training and recordkeeping, and compliance with industry-specific standards. The audit assesses the target company’s adherence to applicable laws and regulations.

EHS compliance auditing is critical in mergers and acquisitions to identify potential liabilities, risks, and compliance gaps associated with the target company or assets. Neglecting EHS compliance can lead to significant financial, legal, and reputational consequences post-acquisition. Thorough auditing helps buyers make informed decisions and negotiate favourable terms.