A-Team Clears Diligence Hurdles for PE Firm

Companies engaged in transactions involving regulated industries have to deal with complicated legal diligence and reputational risk issues not present in all transactions. As one example, Akin Gump served as legal advisors to a private equity firm acquiring a government contractor that provides services to the U.S. departments of State, Defense and Energy and to the U.S. intelligence community, among others. Due to the general nature of the business, some of the locations around the world in which it operates and some legacy reputational issues from business entities that the contractor had acquired, the deal faced complicated diligence issues.

Akin Gump transactional lawyers were able to call upon an extensive team of regulatory lawyers—including those from our communications, corporate social responsibility, cybersecurity, government contracts, international trade, and labor and employment practices—to assist in clearing regulatory hurdles and resolving compliance and other issues. Through the diligence process, we were able to demonstrate that our client was purchasing a company that had effectively transformed its culture to become a compliance-driven organization with rigorous enforcement of strict hiring practices and numerous other compliance enhancements, which allowed the transaction to reach a successful closing.