FAQ

What environmental review happens when a manufacturing company sells?

Direct answer

A Phase I environmental site assessment is standard on nearly any industrial property, and a Phase II follows where the Phase I identifies a recognized environmental condition.

More detail

A Phase I is a records and site review: historical use, adjacent properties, regulatory databases, underground storage tanks, and a walkthrough. It is non-invasive and typically takes two to four weeks. A Phase II involves sampling soil or groundwater and takes longer. In the Carolinas mill towns, where sites have carried industrial use for a century, findings are not unusual and are usually manageable, but they take time and they give a buyer leverage if they arrive late. Ordering a Phase I before going to market puts the seller in control of the finding and the remedy discussion. Where a plant holds air or wastewater permits, those follow the facility rather than the owner, and the buyer will verify the permit, its limits, and its compliance history.

Authoritative sources

Ready to get started?

Charlotte-region owners of $5M to $20M industrial companies get a confidential valuation range from a mid-market M&A advisor, at no cost. Mon-Fri 8am-6pm ET.

Call (704) 343-6770Text us

Prefer to text? Open your texting app