The Merger Verger is no lawyer so we don’t like to get too deep into the legal aspects of integration (hoping – in part – to set an example for lawyers not to get too deep into the operational aspects of integration) but once in a while we come across an article that draws attention to a topic that doesn’t get much attention in integration circles. So we highlight it.
One came to our attention recently on the risks associated with acquiring a company that does not comply fully with the Foreign Corrupt Practices Act. Goodyear did just such a thing with fairly expensive results after the dust settled and the non-compliance came to light.
The article lays out three core areas of attention:
- pre-closing due diligence including a distinct anti-corruption compliance component,
- post-closing audits to unearth things that might have escaped the rush of pre-closing investigation, and
- post-closing integration practices including training, financial controls, and internal communications systems.
Quick article. Worth the read if only to make sure you’re attuned to the issues so you can get help when the circumstance arises.
Read the full article from Michael Volkov of the Volkov Law Group by clicking HERE.