Mergers and acquisitions generate significant opportunities for realizing cost efficiencies, value and growth. An organization’s ability to seize these opportunities, however, can be impacted if environmental, health, safety, and sustainability (EHSS) issues are not addressed early on and throughout integration.
The cost synergies found within the EHSS function are typically not material; however, EHSS issues can frequently be a key factor in realizing the full cost and revenue synergies in an acquisition. EHSS opportunities are frequently overlooked in supply chain, operations, and chemical compliance integration work. Permitting and compliance breaches, unmitigated risks and liabilities, or stakeholder and social issues can drive up transaction costs, hamper post-merger integration and leave organizations exposed to consequences even years later.
Merger and acquisition teams face an already enormous workload, and often lack the expertise and time to address EHSS issues during the integration phase. Resources and funding available to support integration tend to decline rapidly over time so EHSS PMI planning must begin pre-close. Without specialized resources and support, organizations frequently struggle to realize the full business value of their transactions.
Specialized resources and support
ERM equips organizations and their integration teams with the tools and best practices they need to optimize the opportunities associated with organizational change.
We have extensive pre- and post-merger integration experience in multiple industries across the full range of EHSS issues.
ERM applies a proven methodology, outlined in our ‘PMI Playbook’, which includes more than 1,000 pages of guidance and resources to help companies plan for the EHSS opportunities and challenges associated with mergers and acquisitions to:
- Assess where EHSS issues may impact broader business synergies;
- Develop practical and achievable EHSS integration strategies and project plans;
- Obtain required resources and funding to ensure integration success;
- Accelerate integration timelines;
- Quantify and reduce EHSS liabilities and risks;
- Improve EHSS performance;
- Achieve EHSS revenue and cost synergies; and
- Give greater comfort to existing or new investors.
- Seamless and successful integrations
By leveraging ERM’s proven methodology and insight into EHSS opportunities and risks during mergers and acquisitions, organizations can accelerate timelines and simplify the assimilation of strategic transactions and investments.
Identifying and prioritizing EHSS factors avoids unexpected or redundant costs and missed opportunities for our clients, facilitates smoother EHSS integration, reduces liability and risk, improves EHSS compliance, enhances operational efficiency, and fosters future growth and operational excellence.