Paris Attorneys Author Article for ‘Capital Finance’ on Importance of Compliance in Company Valuation

Paris Partner Constantin Achillas and Counsel Mathieu Taupin and Cécile Terret  authored an article published July 3 in Capital Finance on the importance of compliance in the valuation of a company during an M&A transaction. In the wake of the pandemic, companies are focused on getting their business back on track. These recovery efforts could see the maintenance and development of anti-corruption measures once relegated to the background, a situation which could lead to increased risks for companies. The article notes that robustness of an anti-corruption framework can have a direct operational impact during an M&A transaction. The sellers and buyers of businesses that are necessarily devalued given the current economic context will have every interest in not adding elements that could devalue these assets. In order to maximize the likelihood that operational decisions will lead to the expected valuations, the relevant anti-corruption frameworks will need to be operational. This represents a cost to business but with a high return on investment.