Project Overview

Due to Client’s recent growth, they have invested in the purchase of several facilities in Michigan in recent years. These facilities included landfills, transfer stations, composting and recycling facilities, waste hauling companies, service and maintenance, office, and storage facilities. In negotiating the purchase of these assets, NTH was hired to conduct due diligence services, including comprehensive records review, environmental auditing, and limited property condition assessment (PCA) services. These due diligence services provided the client with an understanding of the current condition of the assets, which they then used to negotiate a more favorable acquisition price.

Project Scope

During the acquisition due-diligence phase, NTH served as a vital member of the Owner’s team for multiple asset/company transactions in a significant growth cycle for them. NTH served as the Owner’s primary environmental and engineering consultant, reviewing key items of the seller’s business including:

  • Asset condition assessments including buildings, vehicles, and equipment
  • Environmental license, permit, compliance, and violation history and status
  • Records review, including engineering documentation, to independently qualify and quantify remaining asset life and anticipated expenses associated with owning and maintaining into the future assets and facilities such as:
    • Hazardous Waste Injection Wells
    • Waste Transfer Stations
    • Material Recovery and Recycling Facilities
    • Solid Waste Landfills
    • Solid Waste Hauling assets including trucks, lowboys, yard goats, vactor trucks, and construction equipment.
    • Heavy Truck Maintenance and Mechanic Facilities
  • Cost estimates for future capital construction needs, operations, and maintenance of potential asset purchases.

Generally, for each project, NTH conducted a site visit to review the assets under consideration for purchase. Where necessary, NTH retained specialized subconsultants to review various mechanical, electrical, and plumbing components of the facility and site and met with facility personnel while conducting forensic research of available documentation and personnel interviews. Following the site visit, NTH and our subconsultant analyzed these observations to develop an understanding of the existing condition of the facilities and site, identifying defects, items of concern, and/or deferred maintenance.

NTH prepared a report detailing the general condition, status, and history of the various building and site systems, and developed conceptual repair recommendations. To assist the Owner with their negotiating leverage, we prepared an Opinion of Probable cost for all recommended repairs or future costs of ownership, providing an estimate of cost to complete conceptual repairs or capital expenditures that may be required within 10 years of the site visit. This opinion of probable costs helped the Owner to understand the full scope of the asset being purchased and provide them as the Buyer, an educated basis for negotiating the transaction price.

NTH also identified potential regulatory compliance issues that could affect future operations, as well as operating license status and renewal schedules. These elements were assessed for possible future cost and risk of affecting functionality of the assets.

Project Challenge:

The Owner required a comprehensive understanding of the condition of various assets, including landfills, transfer stations, recycling facilities, and more, to support negotiations during their acquisition process.

NTH Solutions:

NTH acted as a “one-stop shop” for the Owner’s due diligence needs. By conducting site visits, reviewing engineering records, and analyzing environmental and operational risks, NTH delivered a thorough evaluation of each asset’s condition. NTH also consolidated findings into a comprehensive matrix, offering Owner a quick and effective overview of all sites.

Client Benefit:

NTH’s expedited process enabled the Owner to meet their tight timelines by evaluating multiple properties concurrently. The detailed assessments and cost analyses streamlined decision-making, saving significant time and provided them with the necessary data to understand and mitigate risks across their acquisitions.