How to successfully carry out your regulatory due diligence?

2/10/2020

Keys to successful regulatory and environmental due diligence

Successful due diligence naturally involves a thorough financial audit. In addition to this, and in order to ensure the sustainability of the company targeted by the transaction, regulatory and scientific due diligence may be necessary. This is particularly the case for companies in sectors subject to international regulations in the scientific field such as REACH or the cosmetics regulation.

Due diligence of this type requires highly technical skills: scientific but also regulatory. EcoMundo carries out this type of accompaniment thanks, in particular, to its in-depth knowledge of production sites and processes as well as international standards according to local markets.

In addition, the areas of environment, health and safety (EHS) are becoming increasingly important in terms of both regulations and brand image. They therefore have a significant, yet difficult to quantify, weight in the economic value of a company.

Finally, the compliance of the products must imperatively be ensured according to international regulations. Various regulations and directives govern the compliance of products in Europe and elsewhere: Cosmetics, REACH and international equivalents of REACH, Biocides, Food supplements, etc. EcoMundo's experts specialised in these regulations use their experience to ensure the compliance of the targeted company.

Why is due diligence now going beyond the financial framework?

The due diligence process starts with the financial aspects of the company. Legal obligations exist in both national and international law requiring companies to thoroughly audit accounts in certain M&A transactions.

However, the aspect of regulatory compliance of products, processes and production sites is just as essential. A non-compliant company exposes itself to financial and criminal sanctions that can be extremely heavy and even endanger it, in addition to damaging its brand image.

Furthermore, private equity investors increasingly tend to impose EHS (Environment, Health and Safety) standards. In order to be attractive and to be sure to complete the transaction, it is therefore in a company's best interest to anticipate its compliance but also to prepare upstream evidence of good management of environmental and health impacts.

Wish to know more about our due diligence services?

For more information, do not hesitate to contact Sylvain de Backer or one of our experts by phone: +1 (778) 234 1607 for North America or to contact them via our contact form, typing in the relevant purpose for your inquiry.

Keys to successful regulatory and environmental due diligence

Successful due diligence naturally involves a thorough financial audit. In addition to this, and in order to ensure the sustainability of the company targeted by the transaction, regulatory and scientific due diligence may be necessary. This is particularly the case for companies in sectors subject to international regulations in the scientific field such as REACH or the cosmetics regulation.

Due diligence of this type requires highly technical skills: scientific but also regulatory. EcoMundo carries out this type of accompaniment thanks, in particular, to its in-depth knowledge of production sites and processes as well as international standards according to local markets.

In addition, the areas of environment, health and safety (EHS) are becoming increasingly important in terms of both regulations and brand image. They therefore have a significant, yet difficult to quantify, weight in the economic value of a company.

Finally, the compliance of the products must imperatively be ensured according to international regulations. Various regulations and directives govern the compliance of products in Europe and elsewhere: Cosmetics, REACH and international equivalents of REACH, Biocides, Food supplements, etc. EcoMundo's experts specialised in these regulations use their experience to ensure the compliance of the targeted company.

Why is due diligence now going beyond the financial framework?

The due diligence process starts with the financial aspects of the company. Legal obligations exist in both national and international law requiring companies to thoroughly audit accounts in certain M&A transactions.

However, the aspect of regulatory compliance of products, processes and production sites is just as essential. A non-compliant company exposes itself to financial and criminal sanctions that can be extremely heavy and even endanger it, in addition to damaging its brand image.

Furthermore, private equity investors increasingly tend to impose EHS (Environment, Health and Safety) standards. In order to be attractive and to be sure to complete the transaction, it is therefore in a company's best interest to anticipate its compliance but also to prepare upstream evidence of good management of environmental and health impacts.

Wish to know more about our due diligence services?

For more information, do not hesitate to contact Sylvain de Backer or one of our experts by phone: +1 (778) 234 1607 for North America or to contact them via our contact form, typing in the relevant purpose for your inquiry.