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Pricing FCPA Risk Into a Deal Before It Became the Buyer’s Problem

Composite Study. Representative matters drawn from our engagements. Details are composites and do not describe any single client.

The Situation

A private equity sponsor acquiring a company with distribution operations in higher-risk jurisdictions.

Engagement: pre-acquisition FCPA diligence, third-party risk review, deal-document protections, and post-close compliance integration.

The Challenge

The target sold through distributors and agents in markets where improper payments are a known risk. Under FCPA successor-liability principles, whatever the target had done before closing would become the buyer’s exposure the moment the deal closed.

The transaction was moving quickly. Nobody had tested the third-party channel, the books-and-records controls, or whether a government-facing agent relationship was a liability waiting to surface after close.

Our Approach

Led by a former federal prosecutor, we ran risk-based anti-corruption diligence into the channels that actually create FCPA exposure: distributors, agents, consultants, and the accounting controls behind them, measured against DOJ and SEC expectations.

Where we found risk we moved it into the deal. FCPA representations, targeted indemnities, and a remediation plan built into the integration rather than deferred to it. After close we refreshed the compliance program, covering policy, training, third-party diligence playbooks and monitoring, benchmarked to the DOJ’s Evaluation of Corporate Compliance Programs.

The Results

The buyer closed with anti-corruption risk identified, priced and contractually allocated rather than inherited blind, and the post-close program was built to the standard a regulator would apply if it ever came asking.

Key Takeaway

Under FCPA successor liability, a target’s past becomes the buyer’s problem the moment the deal closes. The diligence that finds it, and the deal terms that price it, have to happen before the signature rather than after the first inquiry.

Facing FCPA Exposure or an Anti-Corruption Risk?

Global Link Law helps multinational companies prevent, detect, and respond to bribery and corruption risk across borders. Whether you are building an anti-corruption compliance program, conducting third-party due diligence, or responding to an FCPA inquiry, we are ready to step in quickly and help you move forward with confidence.

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