Regulatory Due Diligence for M&A

When you are acquiring, investing in or merging with a regulated business, the financial and commercial due diligence only tells part of the story. You also need to understand the regulatory and compliance posture of the target, because regulatory risk can fundamentally affect the value, viability and future cost of the business.

What we examine

• Licensing status review: are all licences and registrations current, valid and in good standing?
• AML/CFT framework assessment: is the compliance framework adequate, proportionate and operationally effective?
• Regulatory relationship review: what is the history of regulatory engagement? Any outstanding issues, conditions or enforcement actions?
• Compliance team and governance assessment: are the right people in the right roles with the right qualifications?
• Regulatory risk identification: what are the material compliance risks, and what would it cost to remediate them?
• Post-acquisition compliance integration planning: what compliance changes will be needed following the transaction?

The output is a written due diligence report with clear findings, risk ratings and practical recommendations, designed for use by investors, boards and transaction advisers.