Mergers and acquisitions (M&A) are vital for business development and market expansion, and the Middle East in 2024 has continued to show robust growth. However, M&A transactions also present a complex array of risks, particularly when it comes to compliance, oversight, and portfolio management. A well-designed compliance framework that spans the M&A process from a pre-deal risk assessment to post-deal integration is critical to managing these risks. This has been highlighted in the recently updated U.S. Department of Justice (DOJ) Evaluation of Corporate Compliance Programs that emphasized the important of embedding compliance in the deals process, designing and implementing a post-deal integration strategy, implementing compliance programs and conducting effective monitoring.
Below, we outline how organizations can embed a risk-based compliance approach into their M&A strategy and how KPMG can support the design and implementation of an effective program. Our summary includes how to develop a risk assessment methodology, enhancing the due diligence process and establishing an integrated approach to compliance through effective monitoring. By focusing on these areas, the compliance function can develop into a strategic partner and help mitigate legal, financial, and reputational risks.