Yes! The McGovern Group has passed the five year mark (hard to admit 30 years personally I must say). A blink of an eye it seems but what was said upon our start must now also be said – the “Group” is our special sauce. Client relationships, a national team of environmental professionals, vendors and strategic partners. We all help each other and strive to achieve the stated objectives at hand. And you know what? It’s fun!

What has transpired? Lots! Namely,

•  Hundreds of projects completed
•  Sites coast to coast and stops with multiple stops in between
•  Cool clientele – publicly traded home developers, non-profits, corporate strategics,
private equity firms, legal community, finance, legal, private development
•  A team environment like no other

So let us say thank you community! We couldn’t do it without you.

The McGovern Group has extensive experience conducting pre-acquisition environmental and building due diligence programs. Call with your questions. We welcome a conversation!

AND…Connect with us on LinkedIn!

Joseph F. McGovern, CBD
Managing Principal
[email protected]
602-418-3949

A common refrain exists in the due diligence world. That is be prepared for the year end rush. Deals having to close by midnight, December 31st can make the holidays, well interesting to say the least. We always say we live in a land of deadlines. They seem to be elevated with the year end close. Any way to get ahead of the game? Yes, we can! A few basic yet effective tips:

1. Ask! Simple reach outs to referral sources, Principals to inquire if deals are in the works. Can help schedule staff, arrange priorities based on deadlines.

2. List out what takes time, what “eats the clock” – regulatory file review, travel, Phase IIs. Tee certain tasks up before the authorization to proceed.

3. Understand the players involved who will have a say (and take time for reviews and comment!). Banks, legal counsel, client reviews.

4. Anticipate scope, potential issues and client’s risk tolerance based on type of transaction. Timing and quality are the name of the game. A little bit of heads up can go a long way!

The McGovern Group has extensive experience conducting environmental and building due diligence programs. Call us at 602-418-3949 for a friendly conversation.

AND…Connect with us on LinkedIn!

Joseph F. McGovern, CBD
Managing Principal
[email protected]
602-418-3949

The Art of the Deal?  No!  The Art of Anticipation is more like it.  Anticipating issues on the ground  is easier if one has an understanding of the deal itself and its objectives.  So by understanding the following, one can anticipate and shore up possible pitfalls:

Scope of Work: One of the more obvious points (we know, trust us).  However, scopes of due diligence vary depending on whom one is representing.  Sellers, buyers and financial institutions have their own guidelines and objectives.  Also, the type of transaction can affect the due diligence approach.

Type of Operations(s):  One size due diligence does not fit all.  Site reconnaissance is all about anticipating what may or may not be present based on the type of facility it is.  Manufacturing?  Distressed real estate?  Deferred building maintenance often results in mold from water damage, damaged asbestos containing materials, PCBs & dilapidated lead based paint.  Anticipating possibilities not only protects the acquirer long term but may also serve as negotiating leverage.

Timing (or lack thereof): To quantify an operations’ environmental compliance posture and outstanding environmental liabilities in short order is part of the business we have chosen.  So, a wise move is to get ahead of the information as best as practical. Previous studies, knowledge of the industry, area and regulatory agencies – submit information requests to all appropriate parties on the front end.  Anticipate data gaps and relay to the deal team/client.

Deal Team Participants – Each Have Their Own Perspective and Duty: Team members such as legal, finance and other advisors will want and need to review the environmental due diligence for not only their input but often times sign-off as well.  Anticipate the time that will be required, the perspective and risk sensitivities they bring to their representation.

The McGovern Group has extensive experience conducting pre-acquisition environmental and building due diligence programs.  Call with your questions.  We look forward to having a conversation!

Joe McGovern

[email protected] 602-418-3949

Ok, more like – listen to each other!  Easy right?  Let’s start with the client.  Are we listening to her business objectives?  Timelines?  Do we understand her risk tolerance?  How about legal counsel?  Is he running the due diligence show?  Is the engagement under Attorney – Client Privilege?  Do we know that from the get go?  Do we even know what makes up the deal team?  Have we even asked?

The question checklist can be long, but are you listening?  Client, you too!  In the fast paced world of transactional due diligence, often times we think we need to jump to step 4 to meet the deadline.

“We are going hard on our money next Monday and need to know if there are any deal killers!”

Still ask the questions and listen.  For example: Listen to legal pertaining to when the process and timing of information distribution may be as important as the information itself. Recognize that certain technical findings may trigger legal liability and financial risk – thus presenting findings verbally to the team well before formal reporting is completed is paramount. And, be prepared (prior to being asked) to identify and quantify due diligence issues in terms of cost, timing and regulatory exposure.

We have time to protect our clients’ interests.

For your due diligence questions, contact The McGovern Group for a friendly conversation.  Our team has extensive, and we mean extensive, experience conducting pre-acquisition environmental due diligence programs for buyers, investors, legal counsel, financial institutions and sellers.