Company Acquisitions
Health and safety issues may not figure high on the normal indicators used when involved in acquisitions but it is an area that should be addressed as it can identify various matters having implications when valuing a company and the level of future investment required.
We can assist with such decisions by undertaking a health and safety audit of the potential acquisition to help identify hazardous operations, breaches of legislation, and non-compliance with recognised guidance and standards.
Management systems, accident history, documentation, statutory risk assessments, registers and records would also be reviewed.
The findings of such an audit would not only establish the degree of compliance with statutory requirements and good practice but could also be used to assess the degree of competence and commitment of the existing management team.
The low level of competence of managers in health and safety was highlighted the Health and Safety Executive following a research project to discover what difficulties companies had experienced when implementing safety management systems. It was found that senior management commitment to health and safety initiatives was one of the most important elements for success but in practice such commitment was not always forthcoming.
The failure of management to effectively control health and safety standards through the development and implementation of safety management systems is often an indicator of poor management performance in other areas such as meeting production targets, quality control standards and budget limits.
A health and safety audit would help assess the commitment and competence of the management team, not only in the area of health and safety but also their general control of the company.
Commissioning an audit before submitting a bid could be a vital aid in establishing the true value if the company, the level of investment required to address physical standards, the competence of existing management team and whether major restructuring or training will be necessary.
For further details on these services contact:
Stephen Weston, Health and Safety Director, on 0844 7700 656
