Evaluate Environmental Risks. Increase Bid Competitiveness. Enhance Acquired Assets' Value & Future Performance. Assessed Environmental Risks. Performed Statistical Simulations and Quantified Environmental Liabilities. Environmental Liabilities assessed at <$7.7MM (90% Confidence).

($25B) Energy Corporation wants to acquire a ($750MM) Oil Firm. Based on non-statistical approaches, Oil Firm's environmental liability estimates range between $11MM and $40MM. Energy Corporation can underbid competitors that use non-statistical approaches with 90% confidence resulting environmental liabilities won't exceed $7.7MM. Energy Corporation can recognize a purchase price discount greater than the actual costs of addressing future liabilities.