Minimising Health and Safety Risks in Business Acquisitions and Closures

When acquiring or divesting a business, companies often overlook the hidden costs and risks associated with health and safety. These risks can lead to unexpected liabilities, financial burdens and even legal exposure for directors and senior management. Quadriga has extensive experience in identifying and mitigating health and safety risks during acquisitions and business closures, ensuring a smooth transition and safeguarding your organisation’s reputation and compliance.

Identifying and Managing Hidden Risks

We provide pre-acquisition and divestment health and safety audits to uncover potential risks, assess financial implications and then recommend necessary actions. Our approach ensures that businesses are not unknowingly inheriting dangerous or non-compliant practices that could lead to severe consequences.

We help our clients answer four key questions:

Are there any material health and safety issues that could prevent you from proceeding with the acquisition?

If a business has fundamental safety flaws or operates in a high-risk environment without appropriate controls, it may not be a viable acquisition. Identifying these risks upfront allows you to make an informed decision.

Are there health and safety concerns that could impact the purchase price?

Significant safety risks may require corrective actions, which could affect the valuation of the business. Factoring in these potential costs before the acquisition ensures you are not overpaying for a business that requires extensive remediation.

Are there issues that the seller should address before the sale is completed?

In some cases, it may be more practical to require the seller to correct critical safety issues before the acquisition is finalised. This approach reduces immediate risks and prevents costly surprises after the transaction.

What steps must be taken post-acquisition to ensure compliance and safety?

Once a business is acquired, swift action may be required to bring health and safety policies up to standard. We support businesses in implementing these changes to protect employees and maintain regulatory compliance.

Avoiding a Costly Acquisition

In one instance, a client was considering acquiring a business specialising in infrastructure maintenance. The target company’s work involved employees carrying out manual tasks in confined spaces with significant health and safety hazards. Our audit highlighted several critical concerns:

Imminent legislative changes could render some of the business’s practices non-compliant.
Emerging technology could replace the manual processes, making the business model less viable in the long term.
The existing safety procedures were based on an internally developed code of practice that did not meet industry or legal standards.

Based on our findings, the client decided to withdraw from the acquisition, avoiding substantial financial and legal risks. Our assessment ensured they did not invest in a business that was likely to face future regulatory and operational challenges.

A Safe Pair of Hands

Whether you are acquiring a business, merging operations, or closing a company, health and safety should be a top priority. Quadriga provides expert guidance to help you navigate these complex transitions with confidence.

By identifying potential risks before they become costly problems, we help businesses make informed decisions, protect their workforce and maintain compliance with UK health and safety regulations.

If you are acquiring or closing a business and require expert health and safety advice, call us today on +44 (0) 118 929 9920, or complete our contact form here.