Exit Strategy liberates transactions stymied by uncertain environmental liabilities. TRC can make your deal a success by assigning a fixed value to the environmental uncertainty and accepting full liability.
With Exit Strategy, the buyer gains cost certainty by eliminating the risk of future liability while the seller secures a fair market price for the land and relinquishes the site free and clear. Both parties get an independent assessment of the costs, a framework for structuring a successful transaction, and the ability to optimize the tax implications associated with the liability.
The Exit Strategy solution also ensures that neither party is dependent on the financial condition of the other when it comes to managing the long-term environmental liability.
TRC Solution
A major utility planned to acquire 18 plants from the oil and gas division of a major U.S. corporation. With a $1.4 billion deal on the table, the acquisition came down to a disagreement on the value of the future costs of the existing environmental liability at those operating facilities. The deal came together when TRC was able to resolve that issue by conducting a site analysis and taking on the liability and clean up for a fixed price of $47 million.
|