The condition of the land, a key factor in due diligence

Before executing a land or business purchase or investment transaction, it is advisable to look at the ground to avoid future problems.

When an investor begins the process of purchasing a company, land or industrial building, he must take into account the condition of the land and its history, since it is a determining factor for both the price and the final time of the operation, without forgetting the possible associated liabilities.

In the same way that an audit is carried out prior to a purchase or investment transaction to evaluate the assets and financial risks, the same must be done with the environmental factor. An Environmental Due Diligence (EDD) allows to know the environmental history of the business or land, which includes the requirements demanded, the degree of compliance, the responsibilities derived and the associated costs, something that is especially important in the case of industries.

It should be taken into account that past activities on a given piece of land may have affected the area and that subsoil contamination remains if no action is taken, therefore, it can be inherited from one owner to another. In order to avoid surprises, it is advisable to carry out a correct investigation of the subsoil and a Analysis Quantitative of Risk The land situation is determined and all possible scenarios, both legal and economic, are contemplated.

Failure to pay attention to this aspect may result in a delay in the expected time to start an activity or build on a plot of land, an increase in the final cost of the operation or even legal liabilities.

Litoclean’s team is formed by qualified professionals with a high degree of experience in soil characterization and treatment, who will provide all the necessary information to the customer so that he can make the right decision in the process.