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2016’s Ones to Watch in Anti-Corruption Due Diligence

To address these concerns, our clients often engage a range of experienced advisors to help them understand the full exposure to risk of a contemplated transaction. Every aspect of a business’s operations needs to be considered. This means companies often retain forensic accountants to work alongside legal advisors to gain a robust understanding of how business activities and gaps in compliance frameworks translate into regulatory, financial, and reputational risk at an operational level. Further, regulatory statements such as the US Department of Justice’s Halliburton Opinion suggest that regulators have come to expect anti-corruption due diligence that includes forensic accounting expertise. This accounting expertise is invaluable to understanding if a more enhanced phase of due diligence or post-close work is required, including financial record analysis and transaction testing.

In the current environment, M&A activity brings a host of concerns that take us beyond simply considering bribery and corruption risk. The completion of targeted pre- and post-close due diligence can help investors understand their exposure to regulatory action, financial loss or damage to their reputation. Further, and perhaps more importantly, considering the reputational risks early in the deal means that acquirers can take a risk-based approach to their due diligence, making sure that the breadth and depth of their review prevents any post-close surprises.

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AI Magazine May 2016  
AI Magazine May 2016