Fri, Oct 7, 2022

Case Study: Broker-Dealer Acquisition Diligence

Global Due Diligence in M&A Transactions

Regulatory due diligence is an important tool to ensure that an acquirer is cognizant of the risks and compliance complexities that exist at a regulated target company. When Kroll was asked to help a global financial services firm conduct due diligence on a broker-dealer acquisition target, our global footprint and multi-jurisdictional expertise proved invaluable. In addition, the expertise and efficiency of our team ensured the diligence was completed within a short time frame. 

The engagement was focused on several aspects of regulatory due diligence, including a detailed document analysis, risk mapping and a thorough onsite review of the target, including interviewing key stakeholders. During this process, Kroll’s team across the UK and the U.S. worked collaboratively and efficiently to identify several regulatory risks and enhancements to the target’s operations and compliance program. By identifying these areas and creating a punch list of priorities, Kroll created for its client a six-month roadmap of corrective milestones to rectify certain identified issues. This included implementing system enhancements, additional compliance testing in high-risk areas, employee training and improving workflows.

Project Outcomes

Kroll’s assessment and remedial plan provided its client with critical information, which ultimately resulted in the parties moving forward with the transaction. It also provided Kroll’s client with valuable insight when negotiating its terms with the target. In addition, creating a roadmap of corrective milestones provided a transparent tool for all parties to ensure they are on the same page for remediation. 

Financial Services Compliance and Regulation

End-to-end governance, advisory and monitorship solutions to detect, mitigate, drive efficiencies and remediate operational, legal, compliance and regulatory risk.

Retained Compliance Support and Managed Services

With expertise in diverse regulatory frameworks, including the FCA, the SEC, AMF, SFC, MAS and more, Kroll offers practical support, from initial authorization to ongoing compliance support.