Today, I begin a one month series on how to have a more effective compliance program involving business ventures. This will include the role of compliance in mergers and acquisitions, the role of compliance in joint venture agreement, distributorship, franchises as well as other forms of business relationships.
The 2012 FCPA Guidance makes clear that one of the ten hallmarks of an effective compliance program is around mergers and acquisitions (M&A), in both the pre-and post-acquisition See more +
Today, I begin a one month series on how to have a more effective compliance program involving business ventures. This will include the role of compliance in mergers and acquisitions, the role of compliance in joint venture agreement, distributorship, franchises as well as other forms of business relationships.
The 2012 FCPA Guidance makes clear that one of the ten hallmarks of an effective compliance program is around mergers and acquisitions (M&A), in both the pre-and post-acquisition context. A company that does not perform adequate due diligence prior to a merger or acquisition may face both legal and business risks. Perhaps, most commonly, inadequate due diligence can allow a course of bribery to continue - with all the attendant harms to a business’s profitability and reputation, as well as potential civil and criminal liability. In contrast, companies that conduct effective due diligence on their acquisition targets are able to evaluate more accurately each target’s value and negotiate for the costs of the bribery to be borne by the target. But, equally important is that if a company engages in the suggested actions, they will go a long way towards insulating, or at least lessening, the risk of FCPA liability going forward.
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