Manufacturing Portfolio Sell Side Diligence

TRC's support for the Seller brought a focused approach to the presentation of environmental conditions at five manufacturing sites, securing the Buyer's confidence for environmental risk.



Manufacturing Company

Project Location

US and EU

TRC supported the sale of a manufacturer of specialty membranes for the soluble delivery of various products in “melt-away” packets for use in detergents, industrial applications and water separation technology applications, operating though five locations in the US and EU. Due to potential concern over environmental risk associated with the historic site use at some locations, as well as operating compliance permits, Seller was proactive in the management of the sale process to maintain Exit value.

TRC provided comprehensive Sell-Side Due Diligence support, updated Phase I assessments, and prepared the data room technical reports and liability cost estimates for legacy site remediation costs, ensuring that the facilities were optimally framed to mitigate bidders’ concern.

By investigating and addressing environmental issues before sale, Seller was able to frame the issues and present liability concerns, easing deal negotiations with Buyer, simplifying negotiations with deal team counsel, and avoiding potential cost adjustments for perceived environmental liabilities.

TRC’s activities included:

  • Reviewing, updating and improving facility records and data.
  • Developing legacy site remediation plans and expedite regulatory plan approval.
  • Demonstrating operational viability.

Benefits included:

  • Seller provided appropriate data and analysis to support deal negotiations with Buyer and regulators. Purchase price adjustments were avoided.
  • TRC’s Sell-Side due diligence in advance of the prospective deal addressed perspective bidders’ concern for environmental liability. Seller was able to realize market value for the business.
  • The deal closed.

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