EDD

Orbicon successfully helped Avis Budget assess and identify potential environmental liabilities prior to the acquirement of 90 leasehold businesses located across Scandinavia.

A comprehensive Environmental Due Diligence (EDD) project reaching across the Scandinavian countries

It can cost an acquirer dearly if they are hit by undiscovered environmental liabilities. EDD is therefore a critical tool of property and asset evaluation during transactions. Avis Budget was in the process of acquiring a number of leasehold businesses across Scandinavia. For a transaction this big, they wanted to manage their risks confidently. At the time, the leasehold businesses were used for industrial activities. This made it particularly important for Avis Budget to assess the financial and legal risks of the acquisition, since the handling of certain materials might have led to contamination.

Orbicon, one of the leading firms in Northern Europe within environmental management of soil and groundwater, was chosen to conduct environmental due diligence. The assignment covered 90 leasehold businesses across three countries, Denmark, Sweden and Norway, and was conducted in accordance with ASTM International’s Standard Practice for Environmental Site Assessments.  The project was logistically comprehensive, due to its scale, with leasehold businesses in several different countries and tight report deadlines. However, as a North European consultant with offices throughout Denmark and Sweden, Orbicon could meet the challenge. Our network of specialists worked closely together across borders and brought in interdisciplinary expertise. This ensured that the project was executed with the highest level of quality, and in a cost-effective and timely manner.

By receiving the results of the EDD, Avis Budget lowered the risks of their transaction. Orbicon’s team ensured that the client was able to make well-informed and solid decisions by providing them with top quality reports and advice, and thereby helped them avoid sudden costs and penalties.

Ulrik N. Muushardt

Market Manager
+45 20 47 63 92

“In our assessment of the leasehold businesses, we made an evaluation of the physical setting characteristics through reviewing e.g. topographic maps and hydrologic reports. We used referenced historical sources to review the use of the property as well as the surrounding area. We furthermore conducted observations and interviews to assess the current use and conditions of the leasehold businesses”

Ulrik Muushardt, Project Manager, Orbicon 

The Scope of the Assignment – Assessment and management of environmental risks

It is important to know exactly what you are getting when you are acquiring a leasehold business or industrial site. Orbicon worked in compliance with ASTM 1527 adjusted to local standards. 

Orbicon helped Avis Budget assess and manage the environmental risks efficiently, and the services were discreet and timely through all the stages of the project, which included:

  1. A desktop study of potential contamination activities at 90 leasehold businesses in Denmark, Norway and Sweden
  2. Phase I: Based on the desktop study, 30 leasehold businesses were chosen for Phase I – Due diligence in accordance to ASTM 1527-1. This included the procurement of materials from the municipalities and regions, and a thorough inspection of all 30 properties. 
  3. Phase II: The conduction of environmental investigations at 7 leasehold businesses across Scandinavia in compliance with ASTM to investigate the potential sources of contamination
  4. Throughout the project, Orbicon prepared liability notes, evaluating the costs of the different scenarios in connection to the transaction  

For Avis Budget, environmental due diligence ensured that they avoided unforeseen financial demands

Project
Client
Avis Budget
Size
90 properties
Locations
Denmark, Norway & Sweden
Year
2014-2015
Team
Project manager, worldwide
Integral Consulting Inc. (USA)
Project manager, Scandinavia
Orbicon A/S
Competencies
Project management
of teams working in three different countries
Expertise
within soil and groundwater
Systematic and high quality
identification and assessment of environmental risks
Evaluation
of mitigation measures
Strict observance
of tight deadlines