Assessing EHS in Acquisitions and Divestitures - II
- Topics:
- Investment Strategy
- Tags:
- Acquisition,
- Pilko & Associates,
- Mergers & Acquisitions,
- Investment,
- Financial Accounting,
- Finance,
- Divestiture,
- Corporate Law,
- Business Operations,
- Adjustment,
- ...
- Source:
- Pilko & Associates
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Overview: Acquisitions or divestitures normally require detailed negotiations and/or special provisions for certain EHS issues. Developing an overall negotiating strategy early in the process is the key. It states that contractual provisions should be proposed in the very early stages of the transaction; for example, the seller can provide draft contractual language in the offering memorandum or data room. Both buyers and sellers have several tools to handle EHS issues: representations and warranties, adjustments to the purchase price, indemnification’s, and the exclusion. Article explains the provisions for the acquisition process and defines the topics like purchase price adjustments, Indemnities etc. Regardless of the approach taken, recognize that an extremely hard line in one area may require tradeoffs in another. The package of contractual provisions and purchase price adjustments should be viewed as a whole, designed to protect and align the interests of both parties, and constructed to motivate desired behavior.
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Format: PDF | Size: 30KB | Date: Aug 2001 | Pages: 5
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