or advocacy strategies before presenting transactions to regulators. In other cases, parties can prepare in advance for likely regulatory outcomes, reducing uncertainty and compliance risk. Such steps can help parties preserve transaction certainty, manage regulatory timelines, and reduce the risk that national security concerns become a gating issue late in the deal process. Dealmakers should monitor these developments as they may meaningfully impact the ability to deploy capital and close transactions. Dealmakers should evaluate FDI screening risk early in the transaction process, with careful attention to the identity and ownership of investors, the sensitivity of the target business, technology transfer risk, government touchpoints, data exposure, supply-chain dependencies and potential geopolitical signaling. In the following sections, we contextualize current trends in a focused set of jurisdictions to assist cross-border dealmakers with understanding the headwinds and assessing how best to manage FDI-related considerations from the start of the transaction process to avoid impediments to closing. Dechert regularly advises foreign and domestic entities through the FDI review process, helping them determine if they should bring a transaction before regulators, assess the legal, political and policy considerations that may shape regulatory review, assemble the required information for a filing and then (as necessary) negotiate with the review body in a manner that minimizes both delay and the imposition of conditions that might threaten the transaction. Dechert lawyers also advise on the U.S. outbound investment rules now in effect and are closely monitoring the implementation of the expanded U.S. statutory framework and the development of outbound investment review initiatives in the EU and other jurisdictions.
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FDI and National Security Review
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