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Pinpointing the potential of a fuel business purchase and achieving £750k in savings

Published: 16 August 2023

When an established UK fuel supplier wanted to extend their reach in the north of England, they looked to Adler and Allan to ensure they made an informed buying decision. Our support reached far beyond standard due diligence, helping our client secure a safer, substantially improved business, distinct competitive advantage, and £750,000 in cost savings.

Project overview

Aiming to grow their UK footprint, our client located a potential fuel company and oil depot acquisition within a key northern territory. Adler and Allan were tasked with identifying the risks of the purchase, the site’s pressing environmental issues – and the financial impact of putting things right.

The depot’s high contamination levels – and estimated £500,000 clean-up costs – had already caused other buyers to decline the deal. Our client needed accurate data, detailed risk analysis, and our experience to pinpoint possibilities their competitors couldn’t.

Our solution

Our in-depth investigation, risk assessment, and monitoring work uncovered the site’s critical environmental concerns and – crucially – its true commercial value. We not only confirmed the business was a solid investment, but also armed our client with powerful, deal-shaping data.

  • Our expert analysis of the site’s pollution risks led to a £500,000 reduction of the purchase price.
  • We proved the site could be made safe and compliant through smaller-scale remediation – for £250,000 less than expected.
  • Targeted product recovery work revitalised local groundwater sources and safeguarded against future pollution fines.

Through our science-led support, our customer confidently expanded into a brand-new region, establishing roots and revenue streams where less informed buyers had walked away. The result? Actionable data, the inside view of a vital acquisition, and savings of £750,000.

Our process

Adler and Allan provided data, risk assessments, investigations, and monitoring activity to reveal the precise level of contamination across the business.

  1. Our team was appointed by the buyer to identify potential environmental and financial exposure associated with the acquisition.
  2. Specialist engineers delivered contamination data and analysis reports to help the buyer define risk.
  3. A science-driven approach created an accurate picture of the estate and helped shape a bespoke remediation plan.
  4. Investigative activity included quantitative risk assessments, borehole drilling, soil and water sampling, and site modelling.
  5. The depot was proved to present a lower pollution risk than originally thought, eliminating unnecessary recovery costs.

Key concerns included free product and dissolved phase contamination in nearby groundwater. Our tailored, low-tech remediation programme addressed immediate and long-term threats to human health and local ecology at minimum cost.

  • Groundwater pumped through separators to recover oil.
  • Manual product recovery using passive skimmers and absorbents.
  • Ongoing monitoring, assessment, and reporting.
  • Responsible waste disposal in line with environmental law.

Outcome and results

Adler and Allan highlighted hidden value within the business, secured a significant reduction on the purchase price, and halved site clean-up costs.

The savings

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  • £0k
    £500,000 reduction of purchase price following Adler and Allan investigations.
  • £0k
    £250,000 saved on expected remediation costs.
  • £0k
    Overall project cost savings of £750,000.

The added value

  • A head-start on competitor bids
  • Advantageous negotiation position
  • Increased geographical capability
  • Safe, compliant operations and assets
  • Ongoing, expert protection against environmental harm
  • Reduced legal and financial liability for today and tomorrow

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