Environmental Liability Valuation and Financial Solutions
Resolving environmental liability in M&A, divestiture, and bankruptcy means mitigating environmental risks while generating more financial certainty related to the liability. The TBLS Environmental Advisory experts have helped to resolve over $5 billion of environmental liability for large underwriters of environmental insurance, financial institutions, as well as local and global clients. Members of our team are ISO 9001/18001 trained in both sustainability and environmental practices, and have audited environmental liabilities since 1985.
Our expertise in liability transfer, valuation and claims means we bring real-world experience to determine the “true costs” of the liability relevant to your deal and real strategies to shape those risks post-merger for balance sheet amelioration. We use risk-management solutions to bridge the quantifiable gaps, creating certainty and reducing or eliminating the possibility of being derailed by unknown future events.
Our industry experience includes the full range of issues relating to local cleanup and remediation of large toxic sites, complex multi-site problems and cross-border deals. We understand the intricacies of regulatory oversight including ISRA, CERCLA, Clean Water Act, RCRA/Superfund, NRD EPA and other programs, Regardless of the liability, TBLS Group’s “insider” perspective enables us to advocate our client’s position and then identify solutions that are fair and technically sound.
Buyout & Reinsurance Options for Large Long-Tail Liabilities
TBLS serves as the primary technical advisor and consultant to an underwriter and reinsurance company capable of writing the largest finite risk/liability, buy-out and remediation “cost stop-loss” policies available on the market today. With this in place TBLS valuations and consulting services include exploring immediate financial solutions for liabilities up to $500MM.
Mitigating Risk Using ASTM Standards & Financial Modeling
TBLS brings a global yet granular approach to examining environmental costs. Our detailed financial models analyze current costs and predict future costs. We forecast future liabilities using our in-house Monte Carlo modeling capability covering best case, average, and worst case pricing scenarios. Using assemblages from the USEPA’s own cost-estimating database, we generate a baseline to monitor costs spent on actual claims over time against the Value at Risk (VaR) of the commutation account. With our 20+ years of M&A and remediation costing experience, our modeling meets ASTM standards without exception.
Whether your objective is cleansing the balance sheet, creating more certainty or exploring ways to control and cut costs related to long liability tails, TBLS brings the analytics, tools, financial solutions and know-how to guide you in the process.