Commercial Restaurant Chain: Pre-Purchase Audit Program

First Environment was contracted to perform a pre-purchase audit program of 242 restaurants and a manufacturing facility located in ten states in the west and Midwest. To meet the client's time frame, the entire program was completed within 55 days from authorization. The audits included full ASTM reporting with site visits by experienced professionals scheduled to avoid peak dining periods. At the height of the site visit program, restaurants were being visited at a rate of 28 per day. Past uses and adjacent sites with potential contamination were identified as the critical issues. Multiple sources of historical information were searched until past uses could be established.

33 sites were identified with potential concerns resulting from historical uses such as septic systems, underground storage tanks, manufacturing, and paint spraying activities. In one case, use of the property as an oil field in 1928 was identified. Cost estimates for potential remediation were developed for these sites and the acquisition was completed.

Mergers & Acquisitions
Environmental Due Diligence
Case Study