An international company based in London, UK needed to dispose of some of its non-core assets to raise cash to pay down debt. Environmental due diligence of the target business was required, which included estimating environmental liabilities according to internationally accepted accounting standards.
Golder used existing site subsurface data, as well as our past experience with site remediation to develop three realistic scenarios for determining how much subsurface assessment and/or remediation work might be required at each site. We then used our knowledge of site-specific factors to apply a probability-weighting to each of the three scenarios to derive the Expected Value (also known as Expected Cash-Flow) for each identified subsurface issue.
With Golder’s environmental liabilities measurement methodology clearly stated, any new information about a site can be easily incorporated into the existing liability model, further increasing the longer-term use of the initial environmental liability measurement.