ALB TOKYO 2017 RISKY BUSINESS IS NORMAL BUSINESS IN …
Transcript of ALB TOKYO 2017 RISKY BUSINESS IS NORMAL BUSINESS IN …
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RISKY BUSINESS IS NORMAL BUSINESS IN ASIA PACIFIC:Case Studies on M&A and JV Due Diligence
アジア太平洋地域での危険性の高い事業を正常な事業とするために:M&A取引や合弁会社でのデューデリジェンスに関するケーススタディ
ALB TOKYO 2017
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ABOUT TODAY’S PRESENTER
• About The Red Flag Group
The Red Flag Group is a global professional services firm specialising in integrity and compliance risk. We have completed over 500,000 due diligence reports in the past 10 years and work with many Fortune 500 companies to support investigations and projects.
Juliet Lui
Head of Professional Services, APAC
The Red Flag Group
• LLB / BA (University of Sydney, Australia)
• Graduate Diploma in Legal Practice (ANU)
• Certified Compliance & Ethics Professional International (CCEP-I)
レッドフラッググループについて
レッドフラッググループは世界中にお客様を持つグローバル企業と
して、インテグリティリスク、およびコンプライアンスリスクを専門としたプロフェッショナルサービスをご提供します。当社は過去10年間で50万件以上のデューデリジェンスを実施し、Fortune誌世界 500企業ランキングに名を連ねる多くの大企業への調査、事業のサポートを行っています。
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WE HELP GLOBAL BUSINESSES EXPAND SAFELYグローバル事業拡大の安全性確保を支援する当社の拠点
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KEY TAKEAWAYS
Why should Legal and Compliance be brought in at the early stages, especially to prevent corruption issues
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How do we get the deal team to view Legal and Compliance as business partners
What advice should Legal and Compliance be giving to the deals team
Case Studies: Methods in various due diligence approaches• Avoiding a DD checklist• GTE review• Media monitoring
特に汚職問題を未然に防止する観点から、初期段階での法務・コンプライアンス部門の介入の必要性について
実働部門が法務・コンプライアンス部門をビジネスパートナーとして認めるためには
法務・コンプライアンス部門は実働部門にどのような進言を与えるべきか
ケーススタディ:
様々なデューデリジェンスの取組み方法
• デューデリジェンス・チェックリストの使用を控える
• 審査基準の見直し• メディアモニタリング
キーポイント
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WHAT DOES IT MEAN TO BE A MODERN-DAY LAWYER IN 2017?
To TRUSTED ADVISOR
From GATEKEEPER
Eric Schmidt: “Our lawyers were able to articulate the detail of the
company’s new products as well as its product designers”
“During our Monday morning business meetings, it would be hard for you to spot who are our lawyers and who are our business people”
“Our lawyers went beyond the contractual structure, we built
business models for something that basically never existed before”
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A COMPETITIVE ADVANTAGE
Our lawyers have to think about the implications of driverless cars, Google Glass as well as anticipate what’s
coming. We believe this is where our team of lawyers gives the company a competitive advantage.
Automation• Can you move the more mundane tasks to
automation and free up your headcount to do more strategic projects?
Relationships• Are you hiring people that can help you foster
those relationships with the business?
Business-minded• Are you able to advise on the 2018-2019 business
goals or what your competitors are doing?
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CAN TECHNOLOGY FREE UP YOUR HEADCOUNT FOR BETTER PURPOSES?
AUTOMATION
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Here are some examples of ways we have freed up Legal & Compliance headcount to do more strategic projects and become immersed into the business
• Automate risk-analyzing on suppliers
• Automate media monitoring and get filtered alerts on third parties and resellers
• Automate sanctions screening and false-positive analysis
• Use an e-learning course that “builds itself”
WHAT COULD YOU AUTOMATE?
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M&A AND JVS ARE A WAY FOR IN-HOUSE COUNSEL TO GET DEEPLY INVOLVED
RELATIONSHIPS
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M&A AND JVS ARE STILL STRONG IN ASIA
• M&A growth is still very healthy in Asia, especially in China, Japan and India
• Competition to buy technology infrastructure, apps and fintech will continue
• Fintech has an expected annual growth of 22% until 2020, as well as e-commerce
• Japan has increasingly looked towards outbound M&A to increase competitiveness and growth• Recently attention has been on
South East Asia
• アジア地域、特に中国、日本、およびインドにおけるM&Aは、好調に推移しています。
• 技術、インフラ、アプリ、フィンテックなどを手に入れるための競争が続いており、フィンテック市場は2020年までに年率22%程度の成長が見込まれています。
• 日本では、競争力強化と成長促進のため、日系企業による海外企業へのM&Aに重点がおかれており、
近年、東南アジアへの注目が高まっています。
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BUYING COMPANIES IN EMERGING MARKETS ACTUALLY MEANS YOU ARE ACQUIRING OWNER-LEAD COMPANIES AROUND THE REGION
新興成長市場での企業買収は、その地域で現地オーナー所有の企業を得るということです。
South-East Asia has experienced huge growth and its domestic companies can appear to be attractive ways for Japanese companies to expand in the region
BUT WHAT ARE THE RISKS WHEN YOU ACQUIRE THESE LOCAL OWNER-LEAD COMPANIES?
巨大な成長市場である東南アジアの現地企業は、日系企業にとって事業地域拡大のチャンスとなります。
しかし、現地オーナー所有の企業を買収する際にはどのようなリスクがあるのでしょうか。
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THE CHAIN OF ACQUISITION EVENTS企業買収での出来事
What are you actually buying? Who runs the show on the ground?
あなたはどの企業を買収しているのですか。
誰が現場の責任者ですか。
Japanese company wants to solidify Asian presence
• Buys the Asian company with their strong regional business
• Is actually buying a group of local owner-lead companies
• 20 years in business and a leader of the domestic market
• Attractive target
• But their company culture is not the same as yours
アジアでの事業強化を図りたい日系企業が、地域に強力な事業基盤を持つアジア企業を買収します。実際に現地オーナー所有のあるグループ企業も買収しています。
国内市場を20年間リードする現地企業であり、魅力的な標的ですが、日系企業とは企業文化が異なります。
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Let’s consider the American example
According to the DOJ and SEC: YES
“Successor liability applies to all kinds of civil and criminal liabilities, and FCPA violations are no exception.”
Furthermore, if misconduct continues post-acquisition, liability is compounded
COULD THE ACQUIRER BE LIABLE? 買収元企業は責任を負う可能性がありますか?
アメリカ合衆国を例にとってみましょう。米司法省と証券取引委員会によると、答えはイエスです。
譲受人の責任とは全ての民事、および刑事責任であり、連邦海外腐敗行為防止法に例外はありません。
さらに、不正行為が買収後も続いた場合、その責任の度合いは増します。
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CASE STUDIES FOR ACQUISITION DUE DILIGENCE
Some mistakes and some successes
$795M
$13M
$0
Vimpelcom is the joint venture between Telenor and a Russian oligarch. Now rebranded as “VEON”, bought an Uzbek company which had links to a government official (via a shell company) – and they had bribed that government official
Mondelēz (formerly known as Kraft) bought Cadbury’s business in 24 countries, including India, but did not identify Cadbury India’s bribery issues. They also did not self-disclose once they found out.
DOJ did not prosecute for the pre-acquisition misconduct of Wyeth, which Pfizer uncovered when conducting due diligence
Vimpelcom社はTelenor社とロシアの
政治的支配者との合弁会社であり、“VEON”と改名、ウズベキスタン企
業を買収したが、その企業はペーパーカンパニーを通して政府官僚とつながりがあり、贈賄があった。
買収時デューデリジェンスのケーススタディ
Mondelēz社は24ヶ国でCadbury社の
事業を買収したが、インドでの贈収賄問題に気が付かなかった。また問題が発覚した際に自己開示をしなかった。
Phizer社のデューデリジェンスにより明らかになった買収前のWyeth社
の不正行為に関して、アメリカ司法局は起訴しなかった。
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HOW SHOULD THE LEGAL & COMPLIANCE TEAM ADVISE YOUR BUSINESS?
法務・コンプライアンス部門が
事業取引に進言する方法
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HOW TO MAKE YOURSELF VALUABLE TO THE DEAL TEAM
They’re not going to include you at the table if they think you don’t “get” them
Talk money Help them get a good deal
Timing Get immersive
Usually, misconduct and anomalies are discovered within months after acquisition, how would their commissions look then?
Make it relatively pain-free for them, talk in language around successful integration and work fastDon’t slap them with a DD checklist
If misconduct is uncovered during pre-acquisition, perhaps you can come up with a solution for the seller to heavily discount their valuation
Go onsite, demonstrate willingness, visit the local operations together with a country-expert
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法務・コンプライアンス部門が実働部門にとって有益となるためには
あなたから動かなければ、彼らはあなたを巻き込もうとはしません。
金銭面について話す 有利な取引を支援する タイミング調整を行う 臨場感を出す
不正行為や異変は大抵、買収後数か月以内に発覚します。そのとき、経費はどうなりますか。
比較的痛みが伴わないよう配慮し、相手が理解できる言葉で話し、素早く行動します。デューデリジェンス・チェックリストは渡しません。
不正行為を買収前に見つけられれば、対象企業に自社評価を大幅に下げさせる方法が思いつくかもしれません。
現場に行き、意欲を見せ、各所を専任者とともに訪れましょう。
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EVERYONE IS TRYING TO CLOSE THE DEAL
But due diligence goes beyond appraisals and technical inspections, what else do you need to cover?
Media monitoring
Integrate internal controls (financial, sign-off)
Country by country legal and compliance review
Policies, existing training, contracts with third parties
Written undertakings, interviews, site visits
Gifts, travel and expense accounts
Conflicts of interests
Cultural differences
Political connections
Shareholder usage of company funds
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WHY WOULD LAWYERS HAVE TO DO GTE REVIEWS AND AUDITS?
Local owner-lead companies
Do not realise that what they call normal expenses = GTE abuse
Financial controls are rudimentary
Shareholders / family members use the company as a personal bank
Conflicts of interests are not seen as conflicts
We look beyond the numbers
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WHAT DO WE LOOK FOR WHEN DOING DUE DILIGENCE?デューデリジェンスの際に捜索すること
Corrupt intent can be found in 不正の意図は以下のようなことから見つけることができます
No gifts policy, subject to “CEO
discretion”(Remember owner-
lead companies)
Mischaracterization in books & records
“Marketing funds” are a common line item in the books
Cash coupons, fuel vouchers are very popular in SE Asia
贈答物規定がなく、最高経営責任者の裁量となっている
帳簿書類の誤った特徴付け
帳簿上、よくある勘定項目である”マーケティング資金”
東南アジアでは非常に一般的な現金、割引券、金券の授受
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CASE STUDY: USING MEDIA MONITORING TO MONITOR POST-ACQUISITION
買収後の監視にメディアモニタリングを利用したケーススタディ
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2016: Japanese conglomerate is buying a company lead by a prominent
Pakistani family
2016: Pre-acquisition due diligence showed that the family was tightly connected to the Prime Minister
2017: Our own team knows that the Prime Minister, Nawaz Sharif, has since
stepped down due to corruption
We are providing ongoing monitoring to alert the company on the status of their
JV partner and its connections
2016年、日系複合企業が、
パキスタンの高名な一族が経営する企業を買収を計画します。
買収前デューデリジェンスにて、その一族がパキスタン大統領と親密な関係であることが判明しました。
2017年、当社チームが、当
時の大統領ナワズ・シャリフが汚職の罪で辞職した情報を得ます。
対象企業の合弁相手や取引関連の状況に警戒し、当社が、継続的モニタリングを提供しています。
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CONCLUSION 結論
The deal is not necessarily off the table if you find misconduct, but you have to be prepared to self-disclose and remediate fast
Document and follow up on the actions取組みを文書化しフォローアップしましょう。
Knowing the weaknesses of your acquisition subject will allow you to draft stronger terms
KEY TAKEAWAYS キーポイント
Due diligence for JVs and acquisitions is so much more than a checklist
企業買収や合弁会社設立時のデューデリジェンスはチェックリストの活用よりも効果的です。
取得対象の弱点を知ることでより強い条件で立案できます。
好ましくない行為を見つけた際、計画が白紙になるとは限りませんが、すぐに自己開示と是正の準備をしておくべきです。
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Integrity due diligence reports
Compliance screening
Investigations
Proactive monitoring
Professional services
Compliance technology solutions
Supply-chain risk management
Compliance training
Compliance outsourcing
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CONNECT
Websitewww.redflaggroup.com
Webinar schedule and recordings www.redflaggroup.com/webinars
Twitter@juliet_rfg
Email your feedback and comments to [email protected]