October 2014 - Kinstellar and PwC, in partnership with the British Chamber of Commerce in Turkey presented a seminar on “Anti-bribery and corruption due diligence in M&A transactions” on 23 October 2014, at the British Consulate General in Istanbul.
Daniel Torsher, a partner with Kinstellar’s regional Compliance, Risk & Sensitive Investigations practice, and Jonathan Wheatcroft, PwC Turkey’s Forensic Services Leader in Turkey shared insights on market trends and current practices, as well as the ways that effective ABAC due diligence can add value to transactions and significantly reduce successor liability risks.
The event attracted representatives of local companies contemplating disposals and to management of potential acquirers, particularly in situations involving foreign or private equity purchasers. The growing extra-territorial reach of anti-corruption legislation, and the significant consequences that can follow on misconduct that took place before an acquisition, make this an issue worthy of serious consideration in all jurisdictions. Turning a blind eye to these issues can be a costly mistake, but prudent investment in up-front ABAC due diligence can enable a purchaser to make an enlightened risk-based assessment and to structure a transaction in a manner that allows for sensible management of the risk without completely blocking a deal. For expectant sellers, it is never too late to assess these risks within their operations and, if necessary, take steps to remediate.