This is difficult territory, and in the course of our research for the publication we found that while some organisations do very thorough anti-bribery due diligence prior to making an investment, others do not.  When the pressure mounts on deal teams to conclude a transaction, often with a dearth of information, the need for effective anti-bribery due diligence can easily be overlooked or de-prioritised.

 

Anti-Bribery Due Diligence for Transactions - Guidance for anti-bribery due diligence in mergers, acquisitions and investments aims to help those operating in this area by providing a practical guide that draws on the expertise of leading practitioners in multinational companies, the legal profession, accounting firms and professional advisors.

 

It is part of a series of practical guides we have been producing around the Bribery Act and related international legislation.  Like all our publications, it can be accessed free of charge at: www.transparency.org.uk/our-work/publications.

 

TI-UK’s 32-page guide contains

• 10 Good Practice Principles

• A detailed description of how to integrate anti-bribery considerations into a standard due diligence process

• 59-point checklist

• A full description of the legal context.

 

We note that a good practice approach is the most effective means for companies to manage bribery risks across multiple jurisdictions and in a changing legal and enforcement environment.  

      

The report also highlights how changing deal patterns and legislation means that this is an increasingly high-risk area for companies - almost 50% of US corruption-related prosecutions in 2007 were connected to M&A transactions.  In the light of this, it is noteworthy that companies positioning themselves to be acquired must also prepare themselves to be ready to meet the standards required in anti-bribery due diligence.