Deal makers must be cognisant of which countries are falling in line with the digital protectionism and disengagements of the US-China tech race, and to what extent.
Successfully navigate CFIUS and FDI requirements
Many countries—including the US, most of the EU and a majority of developing economies—have national security regimes for foreign investment. Motivated by geopolitical tensions and concerns about technology, data, and security, governments are increasing their scrutiny, particularly on companies appearing to pose a threat. These measures have broad impact and can change with little notice.
Control Risks has over 45 years of experience providing expertise and insight on matters relating to international trade, investment and national security. We support investors by evaluating their exposure, reducing transaction execution risk, maximising the value of the investment, and ensuring ongoing compliance with any commitments made to governments.
Our CFIUS and FDI services
- Deal risk diligence (intelligence): Evaluate a transaction's national security risks, including company operations, subsidiaries, supply chain, corporate security posture, information technology and network architecture, and internal controls.
- Third-party auditor (TPA): Perform an independent audit to evaluate compliance with stated mitigation terms within a US national security agreement (NSA), letter of assurance (LOA), order of divestiture or other stipulated mitigation agreement.
- Third-party monitor (TPM): Perform independent monitor services to evaluate compliance with stated mitigation terms within an NSA, LOA, order of divestiture or other stipulated mitigation agreement.
- Strategic mitigation advisor: Develop governance and compliance models to meet mitigation requirements.
Whether you're in the early stages of exploring the regulatory implications of a transaction under CFIUS jurisdiction, or in need of an independent third party to assess compliance with a mitigation agreement, we have the regulatory experience, cyber security capabilities and independent standing to support your foreign direct investment-related regulatory compliance needs, including:
As the Biden administration prioritises American supply chain independence, it is more critical than ever that foreign investors understand the complexities of CFIUS, U.S. international trade rules.
An investor’s best approach in closing a deal in the US is to aggressively negotiate potential mitigation steps early in the transaction cycle.
Membership is a tailored package of services including risk monitoring, crisis management, response services and investigations support.
Monitor risks, evaluate threats and pin-point opportunities. Access to incisive analysis and forecasting of geopolitical and security issues. Identify and forecast emerging events on a local and global scale.