High-profile environmental liability cases and recent bankruptcies have resulted in a higher awareness of asset retirement obligations (ARO) among banks and investors. It’s not enough to examine the potential profit of an acquisition or investment opportunity. The potential liability must also be known before an investment decision is made, as it can be the difference between an incredible bargain and an albatross asset.
Banks, investment firms, law firms, and any third party tasked with evaluating potential transactions and assessing producers looking for capital need a trustworthy, independent tool to evaluate liabilities. This case study examines how one bank turned to ARO Manager for an independent tool for their ARO analysis for clients looking to acquire assets.