Regulatory Risk Management Considerations for Commercial Mergers and Acquisitions
Posted 01 July 2009 | By
A maturing approach to enterprise risk management is driving an increasing focus on comprehensive due diligence prior to corporate change initiatives such as mergers and acquisitions. This is not surprising as both investors and corporations come to realize that an inadequate understanding of regulatory compliance risks and planning can limit return on investment (ROI). A well-defined (postmerger) regulatory compliance integration strategy is crucial not only to realizing the intended commercial value of the initiative, but also to reducing commercial risk. Regulatory should be fully engaged throughout the diligence process, not only to review regulatory content, but also to lay the foundation for the integration of compliance infrastructures and quality management systems of the two entities.