Acquiring a business may involve assuming environmental obligations associated with its operations, facilities, or real estate. Early investigation allows buyers to evaluate potential liabilities, negotiate protections, and make informed investment decisions.

What environmental liabilities should buyers evaluate?

Potential issues include historical contamination, underground storage tanks, hazardous materials management, environmental permits, regulatory compliance history, ongoing remediation projects, NJDEP enforcement matters, waste handling practices, and environmental reporting obligations.

Why is environmental due diligence important?

Environmental due diligence helps identify regulatory concerns, estimate potential costs, support financing, evaluate operational risks, and determine whether additional technical investigations are warranted before closing.

How can buyers reduce risk?

Review environmental reports, regulatory files, permits, operational records, and compliance history. Coordinate environmental consultants, technical professionals, and legal counsel early in the acquisition process to address identified concerns.

Common misconceptions

Environmental liability is not limited to ownership of real estate. Business acquisitions may involve environmental obligations arising from historical operations, assets, contracts, or regulatory requirements.

Key Takeaways

  • Begin environmental due diligence early.
  • Review regulatory and compliance history.
  • Evaluate potential environmental liabilities.
  • Coordinate legal and technical professionals.
  • Address environmental risks before closing.

When should you contact an attorney?

Consult an environmental attorney before acquiring a business with industrial or commercial operations, evaluating environmental reports, negotiating acquisition agreements, allocating environmental risk, or responding to regulatory concerns.

Contact The Law Office of Alan S. Ashkinaze

The Law Office of Alan S. Ashkinaze advises buyers, sellers, investors, lenders, and business owners throughout New Jersey on environmental due diligence, regulatory compliance, remediation matters, and commercial acquisitions.