The AMA Handbook of Due Diligence

36-03: Environmental Matters

Environmental matters play a crucial role in acquisition of companies that might potentially face environmen-

tal issues. For example, a buyer company must examine whether the target might potentially face CERCLA

lawsuits in the near future. In order to avoid such liability, which is typically unknown at the time of acquisi-

tion, the following items must be carefully examined:

A. General

1. An environmental assessment or audit report, including reports, investigations, studies, internal memo-

randa or records of telephone conversations or other communications regarding prior or current environmen-

tal compliance status ...