AECOM was commissioned by a private equity client to undertake an acquisition technical and environmental assessment of a leading European waste management business. The client handles approximately 5 million tonnes of waste per year has across its facilities in Belgium, Germany, Ireland, UK, the Netherlands, Italy, Spain and Portugal, including the operation of a large fleet of hazardous waste landfills.
We assembled a team of experts in waste management, landfill engineering, environmental, health and safety in the target geographies, to undertake a comprehensive data room review, visit the facilities, engage in face-to-face interviews with senior management, and supported our client with transactions negotiations and options assessments.
The technical due diligence included:
- Assessment of the expected existing operational lifespan of each landfill
- Determination of the legal (consented) status with respect to continued operation and future void capacity
- Review of available authorisations and an assessment of the likely timeframes required for securing future permissions if required
- Identification of ‘potential’ void not yet consented capacity (for future development)
- Assessment of the engineering requirements to ensure continued operation and future capacity and landfill management obligations with respect to closure and aftercare through a review of statutory compliance and existing liability arrangements.
- Assessed the status of the existing operational infrastructure.
The environmental, health and safety due diligence included an assessment of potential environmental (contamination) and legal EHS compliance liabilities associated with the target’s facilities.
AECOM provided substantial support during technical negotiations and question and answer sessions, including working closely with our client’s legal, financial and insurance advisors to ensure a multi-disciplinary review of deal-critical issues. We identified potential “red flag” key issues early in the due diligence process and provided regular updates, avoiding unexpected surprises for our client and allowing appropriate consideration of these issues in the deal financial model from an early stage.