Mergers and Acquisitions

Capturing Hidden Natural Capital Value

Depending on the Seller or the Buyer’s perspective, the integration of the natural capital contained within a corporation’s portfolio could generate greater value.

From a buyer’s perspective for example, the prospective purchase may have value, but that value is potentially diminished by the environmental liability calculated through the reserves listed on the balance sheet.  The inclusion of natural capital and its ability to offset that potential liability could support a difference in the total reserve calculation, ultimately influencing the overall value of the acquisition.

The inverse could also be a possibility.  For example, a corporation may own legacy properties that have never been “valued” from a natural capital perspective but only from a fair market value, tax liability and reserve basis.  The inclusion of natural capital into the valuation of these properties, may add to the overall value of the sale.

  • Natural Capital Inventory
  • Balance Sheet Reserves
  • Natural Capital Valuation