TBLS facilitated a lively discussion yesterday at Lowenstein Sandler, Roseland on Valuation of Environmental Risk in Transactions.
The interdisciplinary panel included PE and Turnaround Executive, Jeff Sands, Environmental Attorney, Mark Heinzelmann, Esq., Lowenstein and Jeff Andrilenas, Environmental Lead at TBLS.
Frances Schlosstein, TBLS president, moderator, posed questions that highlighted both alignment and tensions that occur when evaluating deals with complex liabilities through financial cost/risk and legal lenses. Jeff Andrilenas showed how ASTM standards, beyond Phase I and IIs, provided an environmental-financial structure for deals. He also showed how the results of risk modeling and costing of AROs, contingencies, obligations and guarantees were used to negotiate and resolve environmental matters.
The discussion on how to fence PFAS risks related to a paper mill case concluded the program with all experts agreeing that this was an evolving issue that will need to be addressed at time of deal. Our program was part of a larger CLE seminar entitled: Emerging Environmental Issues for Companies offered to over 50 attorneys and guests who attended.