Environmental Due Diligence Audits

Due diligence refers to the audit of a potential investment that may be carried out before entering into a transaction with another party. Prospective purchasers of property conduct audits to ascertain whether there are hidden environmental problems or issues connected with the property that might require future expenditures. 

The audits are intended to identify environmental problems such as chemical contamination, resulting from current or past practices. They aim to quantify the costs associated with treating such problems so that the site meets environmental guidelines. If an environmental audit identifies any issues of concern, the prospective buyer has the option to decline the purchase or ask for compensation from the seller toward future regulatory penalties or clean-up costs.