James Tillen and Daniel Patrick Wendt Discuss DOJ's New Safe Harbor Policy in Anti-Corruption Report
"Safe Harbor Policy Seeks to Encourage Self-Reporting of Issues in M&A Transactions"
James Tillen and Daniel Patrick Wendt offered their perspectives on the U.S. Department of Justice's (DOJ) new Safe Harbor Policy in The Anti-Corruption Report. The new policy outlines the DOJ's department-wide approach to acquiring entities reporting malfeasance at the acquired company. "The Safe Harbor Policy can help compliance officers educate company boards and management on why such considerations should be at the forefront of acquisition decisions," said Tillen. "The cost, timeframe, and resources required to conduct acquisition due diligence and integration should be factored into the assessment of whether a proposed acquisition is commercially viable," he explained. M&A negotiations may be complicated by an extra emphasis on a timeline, Wendt observed. "In order to take advantage of the policy for any complicated or large transactions with high-risk operations, these generally-applicable timing guidelines will create tension to push for as much pre-acquisition due diligence as possible." Wendt said.