Acquiring U.S. Companies with Foreign Subsidiaries: Relevant Issues

Foley Associates Michelle Gourley and Bill DuFour authored an article that appeared in the January-February 2011 issue of Deal Lawyers titled “Acquiring U.S. Companies with Foreign Subsidiaries: Relevant Issues.” The authors discuss transactions involving the direct and indirect acquisition of foreign operations, stating that more companies are engaging in foreign investments following the decrease of mergers and acquisitions in 2008 and 2009.

They note that the acquisition of a United States company with foreign operations may provide investors with the benefits of established operations, governmental permits and licenses, and the avoidance of the start-up costs and regulatory applications. The authors add that it is vital for the acquirers of such companies to become familiar with the foreign regulatory framework to which the transaction will be subject and to which the acquirer will become subject following the closing of a proposed acquisition.