In an article published by Industry Today on December 20, 2019, Lisa Goodwin offers tips on liability and business risks when buying or selling manufacturing facilities. Goodwin points out that environmental due diligence should be at the forefront of the planning process to help a transaction proceed smoothly to closing and ensure parties can manage legal liability, business environmental risks and compliance issues.
Contractual considerations can address some concerns for the buyers and sellers. “Transactions should be structured to allow for creative cost-sharing or allocation mechanisms to minimize potential liability and provide exit strategies for environmental liabilities identified during due diligence,” Goodwin says. Indemnification provisions are another important aspect of these transactions.
Kristen M. Chatterton