Deputy Attorney General Lisa Monaco, shown in April, emphasized in a speech in October the importance of taking national security concerns into account when evaluating a target company.
Photo: Eric Lee/Bloomberg NewsA Justice Department policy shift around the disclosure of possible wrongdoing uncovered in mergers and acquisitions reinforces the need for buyers to dive deep into a target’s compliance efforts, both before and after a deal closes, corporate advisers said.
Under a new policy announced in October, an acquiring company that discloses potential wrongdoing at a company being acquired within six months of either side of the deal closing date—and fully cooperates and fixes the underlying problems within a year of closing—can presume it won’t be prosecuted by the Justice Department.
Persons:
Lisa Monaco, Eric Lee
Organizations:
Bloomberg, Justice Department