M&A activity in emerging markets presents both opportunity and risk. One risk is the potential to acquire FCPA liability. In this context, risk-based due diligence is essential.
The November 14, 2012, DOJ and SEC Resource Guide to the U.S. Foreign Corrupt Practices Act warns against “pro-forma,” check-the-box diligence. Instead, the due diligence plan must be tailored to the target’s FCPA risk. The acquirer’s plan should incorporate the following inquiries: