Financial Analysis/Management Consulting

The client.

A global engineering and construction company.

The business issue.

As a result of acquiring a competitor, this company faced a large portfolio of redundant real estate, most of it impacted or potentially impacted by environmental issues. The company sought to liquidate a portfolio of properties quickly – in less than 18 months – with adequate controls on long-term financial risks from environmental issues

In doing so, it faced a number of challenges, including:

• Lack of a central database that included key information for each of the sites.
• Lack of specific knowledge regarding the environmental status of each property.
• Lack of a standard process for purchase and sale agreement (PSA) negotiations with potential buyers.

The solution.

Claro Group professionals worked with the company and its real estate broker to design, develop and populate an integrated database that would track all relevant information about the portfolio properties. Our professionals also conducted procurement for and directed management of Phase I investigations by various environmental contractors. Finally, our professionals worked with the company's legal group to develop standardized purchase and sale agreements and appropriate controls for environmental risks.

The results.

By integrating information and adopting a consistent program management approach, the company met its deadlines and budget targets for this project.