Learn about 8 environmental contributors to deal value
As part of its dispute resolution services, BBJ Group senior personnel and Alliance professionals often work with attorneys, providing support to counsel and acting as expert witnesses for a range of litigated and administrative matters including responsible party disputes, regulatory negotiations, and transactions.
A publicly traded company purchased brass foundries across the Country. Seller escrowed contingent environmental liability funds. Unspent dollars were periodically released to seller’s shareholders. At the last escrow period, the buyer disputed the seller’s claim to the remaining $12 million. The agreement provided for “baseball” arbitration by an independent third party environmental consultant. BBJ Group was retained; its decision based on a review of written, final arguments provided by the parties.
BBJ conducts environmental due diligence for real estate transactions and mergers and acquisitions when real estate is part of the deal. Fortune 500 and Global 100 companies across North America, as well as REITs and real-estate developers, hire BBJ Group for all phases of environmental due diligence because of our comprehensive approach, technical expertise, and business acumen.
Identification, disclosure, and measurement of environmental liabilities are increasing concerns for many companies. Amendments to SEC Regulation S-K and FASB Interpretation No. 47 (FIN 47) create a requirement for greater disclosure and accrual and make it clear that a broad range of environmental liabilities requires GAAP treatment and accrual as “conditional liability retirement obligations.”
One of BBJ Group’s clients is a Fortune 500 diverse company for which we have worked with to prepare liability reserve obligations under SEC Regulation S-K. BBJ Group has also been providing technical support to the Client related to most aspects of environmental health and safety. BBJ Group has been able to forecast costs for plant decommissioning, cleanup, and closure; evaluate regulatory trends and aid with permit negotiations during acquisitions and dispositions.
BBJ Group’s opinions of cost are developed using decision and risk analysis and other techniques to establish expected costs. Clients use our valuations to identify and select the best strategy in terms of several metrics: (1) expected value, (2) return on investment, and (3) benefit.
SEC Regulation S-K requires businesses to disclose future risks that are known to management and which are reasonably likely to have material effects on a company’s financial condition. BBJ Group has developed analytical models capable of