Business & Corporate Law -

REGULATORY ISSUES FOR ACQUISITIONS OF GOVERNMENT CONTRACTS BY NON-U.S. BUYERS -

With the uptick in M&A transactions for government contractors, we have seen an increase in cross border transactions. There are several unique regulatory regimes that must be analyzed when structuring M&A transactions involving the purchase by a non-U.S. buyer of a company that performs federal government contracts or the acquisition of certain assets that include government contracts. Failure to address these issues at the onset of a deal can lead to devaluation of the target, at best, and rescission or unwinding of a transaction, at worst. This article outlines some of the key questions when structuring the acquisition of government contracts by a nondomestic buyer.