Baker McKenzie has released its latest report, Taking Center Stage: The Rise and Rise of M&A Compliance Due Diligence. Based on a survey of more than 300 corporate leaders and legal advisers who handle transactions, along with insight from Baker McKenzie compliance, antitrust and corporate partners, the report assesses the challenges and risks that regional and multinational organizations face in relation to compliance due diligence (CDD) across both M&A and JVs.
Pre-transactional CDD encompasses a range of issues, including antitrust, employment, money laundering, data privacy, cybersecurity, bribery and corruption, sanctions, environmental and supply chain compliance. Along with commercial, financial and tax and traditional legal due diligence, CDD should be — and increasingly is — one of the key pillars of any deal.
However, as the findings of this study show, good intentions and best practice can be quite a distance apart, and many multinational businesses are still accepting unnecessarily high levels of risk through inadequate or sometimes even non-existent pre-acquisition CDD and post-acquisition compliance integration.
In this report, we explore both these current “blind spots” and examine global CDD trends and emerging risks.
As always, our team is on hand to help you with any compliance queries and would be happy to provide you with more detail, or discuss any questions.