International Mergers: How to Detect Corruption

Virtually every corporate merger and acquisition (M&A) or joint venture today involves some international component. That means an increasing number of US businesses operate through third parties in distant lands-where the notions of ethical practices may differ from our own. Even worse, they could be illegal under the US Foreign Corrupt Practices Act (FCPA), the UK Bribery Act, and other applicable laws. As the media reports, such investigations and prosecutions have become epidemic in corporate America. So how do you avoid these problems? The authors of this article detail how to conduct effective anticorruption due diligence on acquisitions and foreign business partners. (C) 2011 by Andrew J. Sherman and R. Christopher Cook.