Angelo Paparelli Featured in Mergers & Acquisitions
"Deal Pros Overlooking Immigration Issues in Their Due Diligence May Be Inviting a Costly Hassle Post Close"

Angelo Paparelli is featured in the January 1, 2009 issue of Mergers & Acquisitions in the article, "Deal Pros Overlooking Immigration Issues in Their Due Diligence May Be Inviting a Costly Hassle Post Close." Although some dealmakers are well aware of immigration issues, the article discussed how many believe there still hasn't been enough attention given to immigration ahead of the deal. According to Angelo, dealmakers should be paying more attention to immigration concerns earlier in the process. He noted, "I can't even tell you the number of times you'll see the light bulb go off as I explain why immigration is an important consideration. Most acquirers don't even have it on their due diligence checklist."

While acquirers active in these areas likely have immigration issues on their radar, Angelo warned that "Corporate lawyers will do the work when they're looking at a manufacturing acquisition, but it doesn't dawn on them to go through the I-9 drill when they're working on other deals, particularly when the assets involve IP-oriented companies." Angelo added that the "due diligence shouldn't be solely focused on illegal immigrants. It's just as important to understand whether or not foreign nationals at a target company can move with the business after it's been subsumed." Angelo concluded that immigration is an issue best handled at the outset of a transaction: "Very few buyers are eager to think about immigration until after the deal. Then, post close, they'll take a closer look. The government will allow corrective action, but the problem is that it's much more difficult to unravel a deal after escrow closes and the liabilities have been transferred."