Due diligence
Encyclopedia
"Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care
. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for acquisition
.
.
This Act included a defence at Sec. 11, referred to as the "Due Diligence" defence, which could be used by broker-dealer
s when accused of inadequate disclosure to investors of material information with respect to the purchase of securities.
As long as broker-dealers exercised "due diligence" in their investigation into the company whose equity
they were selling, and disclosed to the investor what they found, they would not be held liable for non-disclosure of information that was not discovered in the process of that investigation.
The entire broker-dealer community quickly institutionalized, as a standard practice, the conducting of due diligence investigations of any stock offerings in which they involved themselves.
Originally the term was limited to public offerings of equity investments, but over time it has come to be associated with investigations of private mergers and acquisitions as well. The term has slowly been adapted for use in other situations.
The due diligence process (framework) can be divided into nine distinct areas:
It is essential that the concepts of valuations (shareholder value analysis) be linked into a due diligence process. This is in order to reduce the number of failed mergers and acquisitions.
In this regard, two new audit areas have been incorporated into the Due Diligence framework:
In business transactions, the due diligence process varies for different types of companies. The relevant areas of concern may include the financial, legal, labor, tax, IT, environment and market/commercial situation of the company. Other areas include intellectual property, real and personal property, insurance and liability coverage, debt instrument review, employee benefits and labor matters, immigration, and international transactions.
(FCPA) is causing many U.S. institutions to look into how they evaluate all of their relationships overseas. The lack of a due diligence of a company's agents, vendors, and suppliers, as well as merger and acquisition partners in foreign countries could lead to doing business with an organization linked to a foreign official
or state owned enterprises and their executives. This link could be perceived as leading to the bribing of the foreign officials and as a result lead to noncompliance with the FCPA. Due diligence in regard to FCPA compliance is required in two aspects:
While financial institutions are among the most aggressive in defining FCPA best practices, manufacturing, retailing and energy industries are highly active in managing FCPA compliance programs.
In the OECD Guidelines for Multinational Enterprises document, it is stated that all members will "Seek ways to prevent or mitigate adverse human rights impacts that are directly linked to their business operations, products or services by a business relationship, even if they do not contribute to those impacts"
The term was originally put forth by UN Special Representative for Human Rights and Business John Ruggie
, who uses it as an umbrella to cover the steps and processes by which a company understands, monitors and mitigates its human rights impacts. Human Rights Impact Assessment
is a component of this.
The UN formalized guidelines for Human Rights Due Diligence on June 16 with the endorsement of Ruggie's Guiding Principles for Business and Human Rights.
's activity, conducted in order to ensure that the fund is in compliance with its prospectus. It is a roadmap for existing and potential investors in understanding whether a specific fund will meet his or her investment horizon, risk tolerance and investment strategy. In a non-exhaustive list, due diligence in the United States would consist of an examination of:
Every investor is going to have different investment horizons and risk tolerance, as well as a strategy preference. It thus follows that there is no "best" hedge fund, but a fund that most closely matches investors' preferences. An investor should almost always:
The term Operational due diligence
is often used to describe the due diligence process used by hedge fund investors, particularly where this incorporates, or focuses largely on, operational risks.
are requested.
For example, duly diligent efforts to locate and/or serve a party with civil process is frequently a requirement for a party seeking to use means other than personal service to obtain jurisdiction over a party. Similarly, in areas of the law such as bankruptcy
, an attorney representing someone filing a bankruptcy petition must engage in due diligence to determine that the representations made in the bankruptcy petition are factually accurate. Due diligence is also generally prerequesite to a request for relief in states where civil litigants are permitted to conduct pre-litigation discovery of facts necessary to determine whether or not a party has a factual basis for a cause of action.
In civil actions seeking a foreclosure or seizure of property, a party requesting this relief is frequently required to engage in due diligence to determine who may claim an interest in the property by reviewing public records concerning the property and sometimes by a physical inspection of the property that would reveal a possible interest in the property of a tenant or other person.
Due diligence is also a concept found in the civil litigation concept of a statute of limitations
. Frequently, a statute of limitations begins to run against a plaintiff when that plaintiff knew or should have known had that plaintiff investigated the matter with due diligence that the plaintiff had a claim against a defendant. In this context, the term "due diligence" determines the scope of a party's constructive knowledge, upon receiving notice of facts sufficient to constitute "inquiry notice" that alerts a would-be plaintiff that further investigation might reveal a cause of action.
Due diligence in supplier quality (also known as due care) is the effort made by an "SQE" (Supplier Quality Engineer) to validate conformance of product provided by the seller to the purchaser. Failure to make this effort may be considered negligence. This is conceptually distinct from investigative due diligence, involving a general obligation to identify true, root cause for non-compliance to meet a standard or contract requirement.
, due diligence is the only available defense to a crime that is one of strict liability
(i.e., a crime that only requires an actus reus
and no mens rea
). Once the criminal offence is proven, the defendant must prove beyond a reasonable doubt
that they did everything possible to prevent the act from happening. It is not enough that they took the normal standard of care in their industry - they must show that they took every reasonable precaution.
Due diligence is also used in criminal law to describe the scope of the duty of a prosecutor, to take efforts to turn over potentially exculpatory evidence
, to (accused) criminal defendants.
Environmental due diligence during commercial real estate and transactions can include Phase I and Phase II Environmental site assessments
. Such assessments are often undertaken in the United States
to avoid liability under the Comprehensive Environmental Response, Compensation, and Liability Act
, commonly referred to as the "Superfund law".
An engineering or property condition assessment (PCA) would include a review of building systems to evaluate deferred maintenance items that can materially affect the operation and value of a property. Building systems would include the foundation, roof, HVAC
, electrical, plumbing, vertical transportation, and building envelope (windows and walls). One result of the report is often a cost table showing the immediate and necessary future repairs and their associated costs. As an example the table would show that in 2 years the outside will need painting and that in 5 years the parking lot will need resurfacing. These reports are good for negotiating the price of a property as well as financial planning. They are required as part of securitized lending CMBS
It is also common for due diligence in a commercial property transaction to include securing a title insurance
policy regarding the ownership of the property and the encumbrances to which it is subject, and requiring the owner to secure an attornment
from each tenant establishing agreement as to lease terms currently in force, and to research the zoning
laws applicable to the property, building code
compliance of the premises, the existence of any special assessments of property taxes applicable to the property, and the sales price history of the property.
procurement
process to ensure risks are known and managed, and during mergers and acquisitions
due diligence reviews to identify and assess the business risks.
Standard of care
In tort law, the standard of care is the degree of prudence and caution required of an individual who is under a duty of care.The requirements of the standard are closely dependent on circumstances. Whether the standard of care has been breached is determined by the trier of fact, and is usually...
. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for acquisition
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
.
Origin of the term "due diligence"
The term "due diligence" first came into common use as a result of the United States' Securities Act of 1933Securities Act of 1933
Congress enacted the Securities Act of 1933 , in the aftermath of the stock market crash of 1929 and during the ensuing Great Depression...
.
This Act included a defence at Sec. 11, referred to as the "Due Diligence" defence, which could be used by broker-dealer
Broker-dealer
A broker-dealer is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers....
s when accused of inadequate disclosure to investors of material information with respect to the purchase of securities.
As long as broker-dealers exercised "due diligence" in their investigation into the company whose equity
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
they were selling, and disclosed to the investor what they found, they would not be held liable for non-disclosure of information that was not discovered in the process of that investigation.
The entire broker-dealer community quickly institutionalized, as a standard practice, the conducting of due diligence investigations of any stock offerings in which they involved themselves.
Originally the term was limited to public offerings of equity investments, but over time it has come to be associated with investigations of private mergers and acquisitions as well. The term has slowly been adapted for use in other situations.
Business transactions and corporate finance
Due diligence can be defined as:- The examination of a potential target for merger, acquisition, privatisation or similar corporate finance transaction normally by a buyer.
- A reasonable investigation focusing on material future matters.
- An examination being achieved by asking certain key questions, including, do we buy, how do we structure the acquisition and how much do we pay?
- An examination aiming to make an acquisition decision via the principles of valuation and shareholder value analysis."
The due diligence process (framework) can be divided into nine distinct areas:
- Compatibility audit.
- Financial audit.
- Macro-environment audit.
- Legal/environmental audit.
- Marketing audit.
- Production audit.
- Management audit.
- Information systems audit.
- Reconciliation audit.
It is essential that the concepts of valuations (shareholder value analysis) be linked into a due diligence process. This is in order to reduce the number of failed mergers and acquisitions.
In this regard, two new audit areas have been incorporated into the Due Diligence framework:
- the Compatibility Audit which deals with the strategic components of the transaction and in particular the need to add shareholder value and
- the Reconciliation audit, which links/consolidates other audit areas together via a formal valuation in order to test whether shareholder value will be added.
In business transactions, the due diligence process varies for different types of companies. The relevant areas of concern may include the financial, legal, labor, tax, IT, environment and market/commercial situation of the company. Other areas include intellectual property, real and personal property, insurance and liability coverage, debt instrument review, employee benefits and labor matters, immigration, and international transactions.
The Foreign Corrupt Practices Act (FCPA)
With the number and size of penalties increasing, the Foreign Corrupt Practices ActForeign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 is a United States federal law known primarily for two of its main provisions, one that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another concerning bribery of foreign officials.- Provisions and scope...
(FCPA) is causing many U.S. institutions to look into how they evaluate all of their relationships overseas. The lack of a due diligence of a company's agents, vendors, and suppliers, as well as merger and acquisition partners in foreign countries could lead to doing business with an organization linked to a foreign official
Foreign official
Foreign official, until recently, referred to a person who held a political office in a government other than one's own. However, the term has now taken a new meaning due to roles and statuses created by legislation such as the Foreign Corrupt Practices Act . From a business perspective, the need...
or state owned enterprises and their executives. This link could be perceived as leading to the bribing of the foreign officials and as a result lead to noncompliance with the FCPA. Due diligence in regard to FCPA compliance is required in two aspects:
- Initial due diligence - this step is necessary in evaluating what risk is involved in doing business with an entity prior to establishing a relationship and assesses risk at that point in time.
- Ongoing due diligence - this is the process of periodically evaluating each relationship overseas to find links between current business relationships overseas and ties to a foreign officialForeign officialForeign official, until recently, referred to a person who held a political office in a government other than one's own. However, the term has now taken a new meaning due to roles and statuses created by legislation such as the Foreign Corrupt Practices Act . From a business perspective, the need...
or illicit activities linked to corruption. This process will be performed indefinitely as long as a relationship exists, and usually involves comparing the companies and executives to a database of foreign officials. This process should be performed on all relationships regardless of location and is often part of a wider Integrity ManagementIntegrity ManagementIntegrity Management Consulting is a fast-emerging global sector that advises individuals and corporations on how to apply the highest ethical standards to every aspect of their business. At the core of Integrity Management is the belief that companies have a strong interest, as well as a...
initiative .
While financial institutions are among the most aggressive in defining FCPA best practices, manufacturing, retailing and energy industries are highly active in managing FCPA compliance programs.
Human rights
Passed on May 25, 2011, the OECD member countries agreed to revise their guidelines promoting tougher standards of corporate behavior, including human rights. As part of this new definition, they utilized a new aspect of due diligence that requires a corporation to investigate third party partners for potential abuse of human rights.In the OECD Guidelines for Multinational Enterprises document, it is stated that all members will "Seek ways to prevent or mitigate adverse human rights impacts that are directly linked to their business operations, products or services by a business relationship, even if they do not contribute to those impacts"
The term was originally put forth by UN Special Representative for Human Rights and Business John Ruggie
John Ruggie
John Gerard Ruggie is the Berthold Beitz Professor in Human Rights and International Affairs at Harvard's Kennedy School of Government and Affiliated Professor in International Legal Studies at Harvard Law School...
, who uses it as an umbrella to cover the steps and processes by which a company understands, monitors and mitigates its human rights impacts. Human Rights Impact Assessment
Human Rights Impact Assessment
Human Rights Impact Assessment is a process for systematically identifying, predicting and responding to the potential human rights impacts of a business operation, capital project, government policy, or trade agreement...
is a component of this.
The UN formalized guidelines for Human Rights Due Diligence on June 16 with the endorsement of Ruggie's Guiding Principles for Business and Human Rights.
Philanthropy
With origins in the private sector world of business and finance, the term “due diligence” in philanthropy refers to the process through which an investor (or funder) researches an organization’s financial and organizational health and capacity to guide an investment (or grantmaking) decision. The decision to fund or not to fund is based upon a balance of objective data analysis, insight into the general state of organizational health and stability, and intuition. A sound and thorough due diligence review is the process through which all the factors that make up that equation are uncovered and understood. It is the process in which a program officer seeks the “truth” about an organization.Hedge funds and FOREX
Due diligence investigation with regard to hedge funds refers to an in-detail review of a hedge fundHedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
's activity, conducted in order to ensure that the fund is in compliance with its prospectus. It is a roadmap for existing and potential investors in understanding whether a specific fund will meet his or her investment horizon, risk tolerance and investment strategy. In a non-exhaustive list, due diligence in the United States would consist of an examination of:
- A fund snapshot
- Disclosed investment strategy
- Historical returns
- Assets under management (a copy of the fund's portfolio from the custodianCustodian bankA Custodian bank, or simply custodian, is a specialized financial institution responsible for safeguarding a firm's or individual's financial assets and is not likely to engage in "traditional" commercial or consumer/retail banking such as mortgage or personal lending, branch banking, personal...
is usually requested) - Audited financial statements if the fund is regulated by the U.S. Securities and Exchange Commission (SEC)
- Fund's terms and details
- Regulatory registration if any
- Risk factors
- Valuation
Every investor is going to have different investment horizons and risk tolerance, as well as a strategy preference. It thus follows that there is no "best" hedge fund, but a fund that most closely matches investors' preferences. An investor should almost always:
- Request consultation from a professional
- Read the fund's prospectus or offering memorandum
- Understand how a fund's assets are valued
- Understand how fees are charged
- Understand any limitations towards the redemption of shares
- Research the backgrounds of hedge fund managers
The term Operational due diligence
Operational due diligence
The phrase Operational Due Diligence , in the context of alternative investments such as hedge funds , means different things to different people....
is often used to describe the due diligence process used by hedge fund investors, particularly where this incorporates, or focuses largely on, operational risks.
Civil litigation
Due diligence in civil procedure is the idea that reasonable investigation is necessary before certain kinds of reliefRelief (disambiguation)
The word relief comes from the Latin verb levo, to raise, lift up, elevate, with the addition of the Latin inseparable preposition re-, which has three distinct meanings: back, against and again. The Latin composite verb relevo results....
are requested.
For example, duly diligent efforts to locate and/or serve a party with civil process is frequently a requirement for a party seeking to use means other than personal service to obtain jurisdiction over a party. Similarly, in areas of the law such as bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
, an attorney representing someone filing a bankruptcy petition must engage in due diligence to determine that the representations made in the bankruptcy petition are factually accurate. Due diligence is also generally prerequesite to a request for relief in states where civil litigants are permitted to conduct pre-litigation discovery of facts necessary to determine whether or not a party has a factual basis for a cause of action.
In civil actions seeking a foreclosure or seizure of property, a party requesting this relief is frequently required to engage in due diligence to determine who may claim an interest in the property by reviewing public records concerning the property and sometimes by a physical inspection of the property that would reveal a possible interest in the property of a tenant or other person.
Due diligence is also a concept found in the civil litigation concept of a statute of limitations
Statute of limitations
A statute of limitations is an enactment in a common law legal system that sets the maximum time after an event that legal proceedings based on that event may be initiated...
. Frequently, a statute of limitations begins to run against a plaintiff when that plaintiff knew or should have known had that plaintiff investigated the matter with due diligence that the plaintiff had a claim against a defendant. In this context, the term "due diligence" determines the scope of a party's constructive knowledge, upon receiving notice of facts sufficient to constitute "inquiry notice" that alerts a would-be plaintiff that further investigation might reveal a cause of action.
Supplier quality engineering
Due diligence is a term used for a number of concepts involving either the performance of source inspection or source surveillance, or the performance of quality duties such as PVA (Process Validation Assessment) or System Audits with a certain standard of care.Due diligence in supplier quality (also known as due care) is the effort made by an "SQE" (Supplier Quality Engineer) to validate conformance of product provided by the seller to the purchaser. Failure to make this effort may be considered negligence. This is conceptually distinct from investigative due diligence, involving a general obligation to identify true, root cause for non-compliance to meet a standard or contract requirement.
Criminal law
In criminal lawCriminal law
Criminal law, is the body of law that relates to crime. It might be defined as the body of rules that defines conduct that is not allowed because it is held to threaten, harm or endanger the safety and welfare of people, and that sets out the punishment to be imposed on people who do not obey...
, due diligence is the only available defense to a crime that is one of strict liability
Strict liability
In law, strict liability is a standard for liability which may exist in either a criminal or civil context. A rule specifying strict liability makes a person legally responsible for the damage and loss caused by his or her acts and omissions regardless of culpability...
(i.e., a crime that only requires an actus reus
Actus reus
Actus reus, sometimes called the external element or the objective element of a crime, is the Latin term for the "guilty act" which, when proved beyond a reasonable doubt in combination with the mens rea, "guilty mind", produces criminal liability in the common law-based criminal law jurisdictions...
and no mens rea
Mens rea
Mens rea is Latin for "guilty mind". In criminal law, it is viewed as one of the necessary elements of a crime. The standard common law test of criminal liability is usually expressed in the Latin phrase, actus non facit reum nisi mens sit rea, which means "the act does not make a person guilty...
). Once the criminal offence is proven, the defendant must prove beyond a reasonable doubt
Beyond a Reasonable Doubt
Beyond a Reasonable Doubt is a 1956 film directed by Fritz Lang and written by Douglas Morrow. The film, considered film noir, was the last American film directed by Lang.-Plot:...
that they did everything possible to prevent the act from happening. It is not enough that they took the normal standard of care in their industry - they must show that they took every reasonable precaution.
Due diligence is also used in criminal law to describe the scope of the duty of a prosecutor, to take efforts to turn over potentially exculpatory evidence
Exculpatory evidence
Exculpatory evidence is the evidence favorable to the defendant in a criminal trial, which clears or tends to clear the defendant of guilt. It is the opposite of inculpatory evidence, which tends to prove guilt....
, to (accused) criminal defendants.
Commercial property
Persons involved in buying, selling, lending, and managing commercial real estate routinely need to perform a variety of types of commercial property due diligence.Environmental due diligence during commercial real estate and transactions can include Phase I and Phase II Environmental site assessments
Phase I Environmental Site Assessment
In the United States, an environmental site assessment is a report prepared for a real estate holding which identifies potential or existing environmental contamination liabilities. The analysis, often called an ESA, typically addresses both the underlying land as well as physical improvements to...
. Such assessments are often undertaken in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
to avoid liability under the Comprehensive Environmental Response, Compensation, and Liability Act
Superfund
Superfund is the common name for the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 , a United States federal law designed to clean up sites contaminated with hazardous substances...
, commonly referred to as the "Superfund law".
An engineering or property condition assessment (PCA) would include a review of building systems to evaluate deferred maintenance items that can materially affect the operation and value of a property. Building systems would include the foundation, roof, HVAC
HVAC
HVAC refers to technology of indoor or automotive environmental comfort. HVAC system design is a major subdiscipline of mechanical engineering, based on the principles of thermodynamics, fluid mechanics, and heat transfer...
, electrical, plumbing, vertical transportation, and building envelope (windows and walls). One result of the report is often a cost table showing the immediate and necessary future repairs and their associated costs. As an example the table would show that in 2 years the outside will need painting and that in 5 years the parking lot will need resurfacing. These reports are good for negotiating the price of a property as well as financial planning. They are required as part of securitized lending CMBS
It is also common for due diligence in a commercial property transaction to include securing a title insurance
Title insurance
Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. Title insurance is principally a product developed and sold in the...
policy regarding the ownership of the property and the encumbrances to which it is subject, and requiring the owner to secure an attornment
Attornment
Attornment , in English real property law, is the acknowledgment of a new lord by the tenant on the alienation of land. Under the feudal system, the relations of landlord and tenant were to a certain extent reciprocal...
from each tenant establishing agreement as to lease terms currently in force, and to research the zoning
Zoning
Zoning is a device of land use planning used by local governments in most developed countries. The word is derived from the practice of designating permitted uses of land based on mapped zones which separate one set of land uses from another...
laws applicable to the property, building code
Building code
A building code, or building control, is a set of rules that specify the minimum acceptable level of safety for constructed objects such as buildings and nonbuilding structures. The main purpose of building codes are to protect public health, safety and general welfare as they relate to the...
compliance of the premises, the existence of any special assessments of property taxes applicable to the property, and the sales price history of the property.
Information security
Information security due diligence is often undertaken during the information technologyInformation technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
procurement
Procurement
Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
process to ensure risks are known and managed, and during mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
due diligence reviews to identify and assess the business risks.
See also
- Know your customerKnow your customerKnow Your Customer refers to both:* The activities of customer due diligence that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them* And the bank regulation which governs...
- Public liabilityPublic liabilityPublic liability is part of the law of tort which focuses on civil wrongs. An applicant usually sues the respondent under common law based on negligence and/or damages...
- Data RoomData roomData rooms are used in many different types of transaction where the vendor or the authority wishes to disclose a large amount of confidential data to proposed bidders typically during the due diligence process...
, Virtual Data RoomVirtual data roomA virtual data room is an online repository of information that is used for the storing and distribution of documents. In many cases, a virtual data room is used to facilitate the due diligence process during an M&A transaction, loan syndication, or private equity and venture capital transactions... - Model auditModel AuditA model audit is the colloquial term for the tasks performed when conducting due diligence on a financial model, in order to eliminate spreadsheet error. . A study in 1998 concluded that even MBA students with over 250 hours of spreadsheet development experience had a 24% chance of introducing...
- Bias ratio (finance)Bias ratio (finance)The bias ratio is an indicator used in finance to analyze the returns of investment portfolios, and in performing due diligence.The bias ratio is a concrete metric that detects valuation bias or deliberate price manipulation of portfolio assets by a manager of a hedge fund, mutual fund or similar...
- Operational Due DiligenceOperational Due DiligenceOperational due diligence is the process by which a potential purchaser reviews the operational aspects of a target company during mergers and acquisitions.-Process:...
(ODD) - Management due diligenceManagement due diligenceManagement Due Diligence is the process of scientifically evaluating the executives who make up the senior management team prior to the close of a business deal that involves integrating the functions and cultures of two or more companies...
- Foreign Corrupt Practices ActForeign Corrupt Practices ActThe Foreign Corrupt Practices Act of 1977 is a United States federal law known primarily for two of its main provisions, one that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another concerning bribery of foreign officials.- Provisions and scope...
- Integrity ManagementIntegrity ManagementIntegrity Management Consulting is a fast-emerging global sector that advises individuals and corporations on how to apply the highest ethical standards to every aspect of their business. At the core of Integrity Management is the belief that companies have a strong interest, as well as a...