Environmental Liabilities In Swiss M&A Transactions

Environmental liabilities, such as liabilities arising from ground or air pollution or from the presence of asbestos in the buildings of the target, are often a predominant issue in the negotiations of deals in pollution-intensive industries. Buyers purchasing polluted or polluting assets must first identify the environmental liabilities. This is done during the due diligence process, usually with help of environmental experts. After the environmental liabilities have been identified, buyers must determine whether these liabilities will transfer with the purchased business (see section A) and, if so, try to obtain an indemnity from the seller (see section B). 

A. The Transfer of Environmental Liabilities in M&A Transactions