Sell-side Diligence for a Global Manufacturer

The Challenge

A global electronics manufacturer and its private equity sponsor were preparing for a sale. The company manufactures electronic components and systems used in military and industrial communications applications, and operates approximately 30 global facilities.

They retained Aeterra to conduct preparatory sell-side diligence and corrective action for identified issues.

Services

Due Diligence

• Phase I ESA, Limited Environmental Compliance Review, Corporate Health and Safety Review, Corporate Legacy Review

Compliance

• Compliance corrective action of identified deficiencies

Site Investigation and Remediation (SIR)

• Phase II investigations of select facilities with contamination issues

The Solution

Within six months of the sale, Aeterra commenced diligence activities, including visits to the company’s facilities. Facility management received on-site assistance to address deficiencies in real time. Aeterra then produced a fulsome list of contamination, regulatory compliance, and health and safety corrective actions and improvements prior to when the buyers commenced their own diligence.

Aeterra’s Compliance and SIR departments worked with the company and facility management to further evaluate and address identified issues. Aeterra also provided assistance to company management in satisfying buyers' requests and questions.

The Results

This preparatory sale work took “environmental” off the table for the buyers, helping streamline negotiations and ensure the company was up-to-date with its permitting and ongoing compliance obligations.