Acquisition of a PSM-Subject Facility: Considerations in due diligence

Due diligence in mergers and acquisitions (M&A) rarely focuses on safety and health concerns. Typically, limited site observations are combined with an assessment of workers' compensation trends. This approach ignores a significant source of potential liability—compliance with OSHA's P...

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Bibliographic Details
Published inProfessional safety Vol. 52; no. 11; pp. 26 - 29
Main Authors Einolf, David M., Menghini, Luverna K.
Format Journal Article
LanguageEnglish
Published Des Plaines The American Society of Safety Engineers 01.11.2007
American Society of Safety Engineers
ASSE
Subjects
Acquisitions & mergers
Compliance
Due diligence
Employees
Failure
Liability
Maintenance management
Occupational health
Occupational safety
Preventive maintenance
Process Safety
Safety management
Workers compensation
United States > US
Online AccessGet full text
ISSN0099-0027
2163-6176

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Summary:Due diligence in mergers and acquisitions (M&A) rarely focuses on safety and health concerns. Typically, limited site observations are combined with an assessment of workers' compensation trends. This approach ignores a significant source of potential liability—compliance with OSHA's Process Safety Management (PSM) standard. These issues can cost substantial sums of money to correct and, if uncorrected, can lead to catastrophic loss exposures. This article discusses an approach to M&A due diligence that optimizes on-site evaluation time; reduces the uncertainty associated with acquiring PSM-subject facilities; and allows an acquirer to develop a rational strategy to implementing a program consistent with the firm's PSM approach and values.
Bibliography:Earth
ObjectType-Front Page/Cover Story-1
SourceType-Scholarly Journals-1
content type line 14
ISSN:0099-0027
2163-6176