What corruption really costs
Monday 30 January 2012 - by Heidi Lawson
To avoid a loss in deal value, an acquirer must conduct careful anti-corruption due diligence that is specifically tailored to the company being acquired. First, the level of risk should be assessed through a series of key questions.
These questions include:
1. Are any employees, owners, or principals current or former government employees or closely affiliated with one?
2. What practices and safeguards are there regarding gifts, entertainment, hospitalities, charitable contributions, sponsorships, donations and other benefits?
3. What is the target's relationship with intermediaries (distributors, agents, consultants, etc.)?
4. Have there been any past investigations/violations?
5. Does the target operate in a high-risk industry/high-risk country?
6. What is the target's association with foreign governments? Does it provide them with goods and services? It is government owned or controlled? Does it rely on government issued licenses or permits?
7. Does the target have clear policies and procedures in place to detect, report and manage FCPA and UK Bribery Act violations?
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