Due Diligence Support
Two Confidential Major Electric and Gas Utility Companies • Midwestern United States
Solution Overview
Client:
Two confidential major utility companies
Business Challenge:
- Tight timelines for due diligence at multiple sites with different historical uses
Solution:
- Utilization of experienced staff for expertise and quick turnaround
Results:
- Timely and thorough due diligence reports, facilitating a timely and informed business transaction
Challenge
Beginning in October of 2020 through April of 2021, Apex Companies was contracted by two major electric and gas utility companies to provide environmental due diligence support for multiple assets across the Midwest. The primary scopes of work consisted of Phase I environmental site assessments (ESAs) including identification of hazardous building materials.
Solution
Annually, Apex completes hundreds of Phase I and II ESAs for clients nationwide. Our clients typically request due diligence support during development/redevelopment projects, mergers, acquisitions, or divestitures when trying to identify potential risk exposure. For these specific projects our clients were planning to redevelop and acquire new property.
During a Phase I process we routinely perform visual checks for non-American Society for Testing and Materials (ASTM) scope items which for these projects included suspected lead-based paint (LBP) and asbestos containing materials (ACMs), apparent wetlands, and the observation of mold, radon, and flood zones.
Results
The results of the Phase I ESAs ranged from no Recognized Environmental Conditions (RECs) identified to sites with multiple RECs for which the client also authorized Apex to conduct a Phase II ESA. Examples of RECs identified included residual pesticides and arsenic from one site’s use as a previous orchard, potential lead contamination in soil due to peeling paint from the building which was built in the 1800s, and another included an adjacent landfill.
The proposed turnaround time to complete draft reports for the previously mentioned Phase I scopes of work was three weeks. By using experienced staff that were proactive in coordinating with the owner and completing the work assignments, Apex was able to deliver draft reports to the client within two weeks. Apex was successful in completing all Phase I ESAs within the contracted budget. Both clients recently awarded new projects to Apex and continue to seek support for both due diligence and other environmental needs.