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Due Diligence Reviews for Mergers and Acquisitions
Description
Due diligence reviews provide a vital tool to help
companies assess the potential liabilities in mergers and acquisitions
(M&As). Companies routinely address environmental liabilities but often
process safety and risk management liabilities are not considered.
Inadequate process safety and risk management programs result in a
higher likelihood of catastrophic accidents subsequent to the purchase
and require expensive post-purchase remedial work to achieve compliance
with regulations and industry standards. This can leave the purchaser
with a substantial unrecognized liability if not addressed prior to
purchase.
Primatech's consultants assess compliance with
process safety and risk management programs for a facility that is the
subject of a merger or acquisition by employing audit protocols. We
utilize Primatech's software package, AUDITWorks, to conduct the review.
Primatech's review focuses on the policies and procedures that make up
the process safety and risk management programs being reviewed. We
address each aspect of the programs and include the management systems
that are used to implement them.
Why Due Diligence for Process Safety?
The identification of process safety and risk
management liabilities has significant financial benefits including
purchase price adjustments, the provision of representations and
warranties, indemnification against risks, or agreements to defend in
the event that unmitigated risks are realized.
Why Primatech?
Primatech has extensive experience in auditing and
reviewing process safety and risk management programs. This helps ensure
an efficient review. Primatech has extensive knowledge of regulatory
requirements for process safety and risk management. This helps in
identifying program deficiencies. Primatech has developed the software
package, AUDITWorks, which provides protocols and facilitates
documentation of reviews. Primatech is internationally recognized for
its work in process safety and risk management. This provides a stamp of
authority for the reviews we conduct.
Services Offered
We conduct an assessment and prepare a report
identifying any deficiencies in the programs so that adjustments can be
made in the contractual terms of the merger or acquisition to account
for the deficiencies.
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