ST1157DOJDOJ

ST1157

A well-designed compliance program should include comprehensive due diligence of any acquisition targets, as well as a process for timely and orderly integration of the acquired entity into existing compliance program structures and internal controls. Pre-M&A due diligence, where possible, enables…

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Plain-language summary

What it actually means.

to be determined

Plain-language summary forthcoming. Source text below.

Source text

As written.

A well-designed compliance program should include comprehensive due diligence of any acquisition targets, as well as a process for timely and orderly integration of the acquired entity into existing compliance program structures and internal controls. Pre-M&A due diligence, where possible, enables the acquiring company to evaluate more accurately each target’s value and negotiate for the costs of any corruption or misconduct to be borne by the target. Flawed  or incomplete pre- or post-acquisition due diligence and integration can allow misconduct to continue at the target company, causing resulting harm to a business’s profitability and reputation and risking civil and criminal liability.

Assessed by HEXDI

What HEXDI assesses.

  • M6

    1 — TRANSACTION SCREENING

    Program has procedures for due diligence screening of entities subject to acquisition or merger with the company.

  • M6

    2 — TRANSACTION SCREENING

    Screening procedures identify the roles and responsibilities of employees and/or relevant operational units responsible for reviews and…

  • M6

    4 — TRANSACTION SCREENING

    Screening procedures for entities subject to acquisition or merger with company require assessment of past and any ongoing violations by…

  • M6

    3 — TRANSACTION SCREENING

    Screening procedures for entities subject to acquisition or merger with company require screening of parties to the transaction, to include…

  • M6

    5 — TRANSACTION SCREENING

    Program requires development, implementation, and maintenance of compliance policies and procedures for entities subject to merger with or…

  • M12

    1 — HANDLING VIOLATIONS

    Program has procedures for tracking and remediating risks of potential violations identified during due diligence in mergers and…

Related

Other DOJ standards.

Source & revisions

First mapped
Jun 8, 2022
Last updated
May 26, 2026 (15m ago)
Source
DoJ Evaluation of Corporate Compliance Programs