Due Diligence Regarding PACs During Mergers and Acquisitions

Due Diligence Regarding PACs During Mergers and Acquisitions

May 12, 2016, Covington Alert

Corporate mergers and acquisitions often overlook political law compliance issues—including whether the acquired company has a PAC—until after the transaction is complete and Day One has come and gone. We recommend considering PAC issues during the due diligence review to ensure there are no legal issues to be addressed in the acquired entity, and to prepare for how the FEC will treat the two PACs immediately after the merger. This alert provides information and resources for the necessary due diligence and for preparations to integrate the PACs after the acquisition is complete.