The transactions such as acquisition or sale, mergers and acquisitions, reorganization and restructuring, management buyouts, and sale-leasebacks represent many technical and financial risks.
Knowing the technical condition of the property concerned (its qualities and technical particularities, its level of conformity, its possible malfunctions, the work to be carried out, etc.), allows you to arbitrate your decisions of purchase, sale, rental, or rehabilitation.
WHAT IS COMMERCIAL REAL ESTATE DUE DILIGENCE?
Commercial real estate due diligence is the process of assessing the current condition of a target company's assets before an acquisition or investment decision, for example as part of due diligence of the buyer or seller.
This is a standard and preventive process that must be carried out before concluding a transaction or signing a contract to ensure that the information obtained does not present negative characteristics.
By performing due diligence, you will make more informed financial decisions for the future of your business and avoid potential pitfalls that would otherwise be unforeseen.
Environmental Site Assessment gives:
- a real, objective, and impartial view of the physical and technical condition of the buildings with regard to the general condition of the property and the regulations
- an estimate of the costs of restoration or the risks associated with the acquisition of the property to make an informed decision.
For the seller, it completes the Due Diligence with reassuring technical and economic data for buyers, making it possible to secure and optimize the sale in terms of costs, prices, and deadlines.
For the purchaser, Record of Site Condition Toronto provides an objective quantified risk analysis carried out by a trusted third party demonstrating the relevance of its purchase to the other stakeholders (shareholders, banks, etc.)
Environmental consultants offer complete advisory and site assessment services at the key stages of your transaction.
Their support includes in particular:
- Due Diligence audit during mergers-acquisitions, disposals-acquisitions
- Supervision of asbestos diagnosis before works or demolition
- Diagnosis of soil pollution, groundwater
- Fauna flora environmental audit
- Support for the drafting of minutes in the event of environmental liabilities
- Environmental Due Diligence audit
Soil and groundwater pollution is not always detected when the company is in operation. Very often, problems arise during transfer/acquisition operations.
Three phases are proposed during an Environmental Due Diligence:
1. Phase 1 ESA in Toronto and Ontario: Inventory, site visit, location of potential sources of pollution, presence of asbestos, lead, termites
2. Phase 2 audit: Identification of the source, extent, and impact of the pollution, compliance study
3. Phase 3 audit: Project management of rehabilitation works
Unidentified defects or hazards in buildings and industrial facilities are serious concerns for investors, financial institutions, and asset owners. Restrictive environmental laws, rising energy costs, and sustainability aspects can also affect the value of an investment.
If you don't do thorough due diligence on your real estate portfolio, you could be in big financial trouble. It is important not to neglect this vital process. This is where Andenviro.ca can help.
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