Tidying up and Freeing up cash

During these days, all types of organisations need to cope with the drastic social and subsequent financial consequences of the Corona -pandemic. In this context, management and investors need to closely review their businesses and portfolios for risks and chances.

Reserves and provisions on balance sheets for issues associated with environmental and/ or health & safety aspects or legacy environmental liabilities, are binding capital and - if not regularly evaluated - may limit the liquidity of a business. Some of the provisions were set aside during M&A transactions or based on evaluations conducted in the past with diligence and under certain circumstances & knowledge base. Others are created to comply with environmental permit conditions. However, the conditions may have altered and technology developed. An expert re-evaluation could lead to a (partial) release of provisions & reserves into business and hence could increase the working capital.

Tauw assist you to develop a strategy for setting environmental liability reserves allowing you to reduce uncertainties and to reduce provisions/ reserves, hence to increase your working capital.

Our approach is based on our long and profound experience dealing with risk and liability assessments and the experiences of our multidisciplinary team in evaluating and quantifying risks of known or unknown environmental and health & safety conditions. The combination of expertise and development of a robust cost scenario for environmental and/ or health & safety aspects is helping you to create business opportunity by freeing up cash on your balance sheet.