More Than Risk Management: How Environmental, Health, And Safety (EHS ) Due Diligence Can Create Value

Environmental, health, and safety (EHS) due diligence has traditionally been regarded as a risk identification exercise to flag potential liabilities in industrial and manufacturing transactions. However, this conventional approach to EHS often overlooks one critical question: How can EHS opportunities create or unlock value?

As the economy has slowed in recent years, stalling mergers and acquisitions (M&A) activity and traditional growth methods, dealmakers have had to seek value creation elsewhere. However, they often neglect EHS matters as an opportunity driver due to a lack of perspective. Forward-thinking private equity firms and industrial operators are beginning to recognize EHS as not just a box to check during transactions, but also as a strategic lever to improve operations, boost EBITDA, and enhance sustainability leadership.¹