Compliance due diligence in M&A deals

Support in managing non-compliance risk in case of M&A transactions

Although this kind on services is usually performed on the buyer’s side during the due diligence in M&A procedures it might be equally interesting for the selling party, in preparatory phase of the M&A deal. The more robust compliance program exists in merging or to be sold enterprises the lower risk of regulatory actions, hence the required risk premium may be lower.

Overview of available services

Risk detection and assessment

  • As-is business process mapping
  • As-is identification of control mechanisms in business processes
  • Risk-based selection of a testing sample and sample-based walk through the efficacy of designed controls in place
  • Identification of the gap between as is and as it should be considering the existing regulatory framework
  • Risk assessment and risk appetite setting advice

Sample project approach

Risk response planning and implementation

  • Prioritisation of detected risk areas
  • Risk response shaping and planning (design of Target Operating Model or TOM)
  • Implementation of TOM across the organisation by reshaped procedures, control mechanisms, communication, and training
  • Post implementation compliance audit (as an option)

Sample project approach

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