Conducting FCPA Accounting Investigations
Multinational companies facing rapid growth in multiple jurisdictions often experience a wide variety of cultural, legal, fi nancial and accounting complexities, along with new obligations and responsibilities as they navigate the global marketplace. Opportunities in transitional and developing countries often times require dealing with unfamiliar geographic territories, foreign governments where lines between official and non-official status are not always evident, and compliance with numerous international, regional or local laws.
Recent trends in M&A activity, such as those in the technology sector, show an increase of 91% in the number of cross border deals in 2004, led by U.S. companies investing in Europe. Nearly 48% of acquirers were U.S. companies, and approximately 70% of the targets were European companies.
It's hard enough ensuring that your company is in compliance with an ever ncreasing multitude of regulations and compliance and reporting requirements, without having to take on the added responsibility for the target of your acquisition plans (avoidance of successor liability). "A stitch in time saves nine" never have those words of old rung as true as they do in today's world of mergers and acquisitions. Now more than ever before, M&A practitioners should ensure that a thorough investigation into the business practices of a potential target is performed, especially in light of the dramatically increased focus regulators have on business activities in foreign countries.
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