CCCP Mergers & Acquisitions Compliance 5

Question 1

Which agency administers the Committee on Foreign Investment in the United States (CFIUS) review process?

Accepted Answer

U.S. Department of the Treasury

Answer

The U.S. Department of the Treasury chairs CFIUS, though the committee includes members from multiple agencies including DOD, DOJ, and DHS.

Question 2

What is a 'virtual data room' (VDR) used for in M&A due diligence from a compliance perspective?

Accepted Answer

A secure, auditable platform for sharing confidential target company documents with authorized reviewers

Answer

VDRs provide a controlled, tracked environment for sharing sensitive documents, creating an audit trail of who accessed what information during due diligence.

Question 3

Under the FCPA, which of the following actions by a newly acquired foreign subsidiary could expose the US acquirer to liability?

Accepted Answer

Paying a government official a bribe to win a local contract before the acquisition closed

Answer

Under successor liability, a US acquirer can face FCPA enforcement for pre-acquisition conduct of the target, especially if adequate pre-close due diligence was not conducted.

Question 4

What does a 'second request' from the DOJ or FTC during HSR review signify?

Accepted Answer

A demand for additional documents and information, extending the waiting period

Answer

A Second Request is a formal demand for extensive additional information, which extends the antitrust review period until the parties substantially comply.

Question 5

Which compliance risk is most commonly overlooked in private equity acquisitions of portfolio companies?

Accepted Answer

Compliance program gaps in lower-revenue subsidiaries acquired as part of a platform strategy

Answer

In platform-and-bolt-on strategies, smaller acquired subsidiaries often lack mature compliance programs, creating aggregate regulatory risk that is frequently underestimated.

(CCCP) Certified Corporate Compliance Professional Practice Test

(CCCP) Certified Corporate Compliance Professional Practice Test

CCCP Mergers & Acquisitions Compliance 5